How to Start POS Business in Nigeria With Small Amount

There is no doubt the POS Business is currently booming in Nigeria.

It's one of the business that is fast growing in Nigeria. POS business is also called Agent Banking business.

Some have also assessed it as being lucrative. In fact, few days ago, I was in a rush to meet up with an appointment. And I need cash urgently. Luckly for me, as early as 8am, a POS vendor has already opened shop.

I made a withdrawal of N30,000 and was charged N250! That was income from one transaction. 

(I have been in a community here I was charged #30 per #1,000. And I have to pay #600 for the #2,000 I withdrew that day).

Now, Imagine if he (the first scenario) does 100 transactions today, he will be making not less than N25,000 income!

What I observed is that, with a good location and network, you stand to make good daily income from this business as a lot of people are embracing this banking medium especially because of its convenience.

With POS business, you can 

✓ Make cash withdrawal,

✓ Deposit cash

✓ Transfer funds

✓ Recharge cable & phone

✓ Pay utility bill etc.

So how can one start this POS business in Nigeria?

1. Get a Host:
Your host can be your bank, Paga, Quick Teller, Opay etc. Many vendors I observed are using their banks as their host.

2. Get a Location:
Identify a place with good human traffic, a place where many people live or do business, and a place with little or no bank presence.

3. Get a POS Machine:
Your bank can give you one for free. Just visit them and request you want to start POS business. In fact, banks are looking for more customers that will start this business. Another thing is this: if you're using your bank's POS, I learnt your bank will also be paying you some commission on top of the fees you're collecting.

Okay, let me give you the real gist about getting POS machine.

The POS machine varies in price, depending on the agency company you are buying from and the type of points of sales machine in you want.

The price of the machine are coming down from what it used to be. We now have some machine that are at #45,000, #65,000, #75,000 etc.

The difference here is just like the way we currently have 2G, 3G, 4G and 5G. (Yes 5G! I just mentioned it).

So, the higher the money, the better the service.

4. Start Advertising Your Business.
Get more people to know you have started small bank around your corner. Put up a banner to that effect. Use words of mouth also. Remember to keep proper records of every transaction you made.

5. POS Agency (Host) Charges.
The host of your POS do charge a little percentage on each of your transactions.

On an average, commercial banks charge owners of POS machine 0.75% for each transaction for general merchants, 1.25% for hotels and 0.2% for wholesale dealers.

Now the POS merchants (owner) are at liberty to charge their customers what they feel is okay and profitable to them.

Although the new CBN guideline suggest a maximum of#200 per transaction. But most people still charge far above that amount.

And again, from an agent a was discussing about this business with. He said First Bank for instance charges customers #100 for each POS transaction. And the agent (the POS owner) is collecting 40% of that amount.

You see, it's a cool business to venture into.

So, this is a nice business opportunity and only few are tapping into it right.

This is the right time for you to jump in and make cool cash as e dey hot!!

Cheers to your success as embark on it!

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