How To Start POS Business In Nigeria
The POS (Point Of Sale) business is currently one of the highest-paid businesses in the country with the highest profitability.
It is a real legitimate business with a good profit. The POS business strives for areas with limited bank access, especially in rural areas with little or no banking.
The POS business can also be referred to as an agent banking business. These agents perform certain essential functions performed by financial institutions in Nigeria.
Many transactions can be made via POS, including Transfers, Deposits, Withdrawals, Debt Payments such as GOTV, Startimes, PHCN, and other bills. In this post, we will be showing you how to start a POS business in Nigeria.
How To Start POS Business In Nigeria
1.Find the Required Capital
For all other businesses, starting your own pos business will require a certain amount of money. Starting a pos business in Nigeria is a severe type of business where you will be working indirectly as a bank.
So before the bank can approve you as an agent, you must have passed the mandatory requirement and the capital. The capital may include the cost of buying a store and hiring a representative, and other expenses.
The basic requirements you must pass on starting a pos business in Nigerian include getting your business registered with the Corporate Affairs Commission as one of the following; Limited Credit Company, Sole Proprietorship, Partnerships, Collaborative Organizations, Community Organizations.
Once you have the required funds and pass some requirements, you need to move to the next step on guiding how to start a pos business in Nigeria.
2. Select the Bank You Want to Work With
All Nigerian banks accept a pos agent to carry on financial activities on their behalf. All you have to do is choose which bank you would like to work with.
Once you have identified which bank you want to be an agent for, next you need to contact them and get their list of requirements.
How to start a pos business in Nigeria once you have reached this stage. Many of the requirements required by banks include
- Have valid identification methods, e.g. driver’s license, national ID card, international passport or voting card
- Bank Verification Number
- Two recent passport photos
- Two current account references
- Proof of business registration (CAC Certificate)
- Tax Identification Number (TIN)
- Memorandum and Article of Association.
- Credit Bureau Report
- A minimum amount of N60,000
The bank will agree with you as soon as you provide all of the above requirements and sign some documents.
As your capital is gotten and all requirements have been met, you need to move on to the next step of starting a pos business in Nigeria.
3. Obtain the Needed Business Resources
Once your application has been reviewed and received by the bank, they will provide you with the necessary equipment to start a pos business in Nigeria.
With the necessary equipment available, you are almost ready for business.
The equipment to be provided by the bank includes,
- Terminal; a portable machine that assists the payment of goods and services at a bank agent’s place using payment cards
- Card reader
- Barcode scanner to scan billing bills
- Personal ID number.
Without these assets, you will not be able to perform the functions of your business. Therefore, once you have obtained bank approval, you should proceed with obtaining the above-required equipment for full operation.
4. Find a Good Place
This is a very important aspect of how to start a pos business in Nigeria. The factor will greatly determine how profitable your business can be.
You need to choose a location with limited banks and ATMs. And think of places with high social connections, places like
- Event Centers
- Schools (University campuses) etc.
Once you have found a place you like, you need to rent a store or build a small shed with a roof for safety reasons. It would help if you made it a little wider to deal with more customers at a time.
Next, you need to invest a little money in advertising; you can pay a graphics designer to make a banner for your business. Place a banner in front of your store and then close and rearrange your store.
5. Provide Your Pos Services
After going through all the above steps on starting a pos business in Nigeria, the final step would be to start offering your services for a profit.
The process of using the terminal is straightforward, as the bank has already indicated. Many transactions that can be done include;
- Paying funds
- Redrawing funds
- Transferring of funds
- PHCN bill payment
- Payment of DSTV and other bills.
The bank will give you a commission based on the number of transactions you carry out. You can charge customers a fee for all the services you provide.
To start a pos business in Nigeria, you can make money in various ways that will be communicated to you by the bank.
Starting a pos business in Nigeria is currently gaining the attention of many people due to the high profit from the company.
It serves as a great source of income for many business people. To make the most of this business, the location of your store is crucial. You need to set up your business in an area with little to no banks.
Also, watch out for ATMs. Ensure it is also a bustling area with enough securities as you will be dealing with a lot of money. That is why even though it is very profitable, it is also dangerous.
Starting a pos business in Nigeria is straightforward if you can follow the required steps explained in this post. It is a very profitable business that I would advise you to start today.
Reread this post, get your capital, get the required documents, follow the steps needed for the bank, collect the necessary equipment, set up your store, offer your services, and make money with your pos business.