How To Start A Successful POS Business-Are you looking to start a POS business in Nigeria? If Yes! Then your welcome on this page, because you will love my guide on how you can start a Profitable POS business in Nigeria.
POS business is one of the legitimate ways to make money in Nigeria because of the high coups in banks and process involves in going to bank to deposit or withdraw money, It has also solved some bill payments, such as airtime sales, DSTV, GOTV, STAR-TIMES, Payment and many other utility bills. One can just go to POS nearby and do all that within minutes.
However, Starting a more profitable POS business is better within location where banks or ATM machine are far away or where many POS machines cannot be found.
POS business serves as an agent banking business, to enable reach wide range of customers within a short time. It has solved long coups in banks and ATM machine.
Are you looking forward to start this business and you don’t know what it takes or how to go about it, read this article below to find out more details about it and how you can start.
How To Start POS Business In Nigeria 2024
Like i said earlier starting POS business works better where there are less or no Banks, ATM machine and less POS stands, rural areas are good locations to start a POS business, I know a friend who makes good money in his community just by doing POS business.
This article will be a lead by the hand on how you can start profitable POS business in Nigeria. Continue reading.
Step 1: Since is a business that deals with finance, before bank can authorize you to start at least you must have a business establishment which will not be less than 12 months, Is an extra care by making sure that you meet some requirement.
To be eligible, Like i said you must have an existing business in operation at least for 12 months. Also, you must have a shop or office from which you operate your business Then, you must have been registered with the CAC ( Corporate Affairs Commission ) as any of the following entities;
- Sole Proprietorship
- Partnership
- Limited Liability Company
- Cooperative Societies
- Public Entities
- Trusts or any other entity aside faith-based or NGOs.
Once you meet this requirement i can assure that you are half way there and is only a matter of time your POS stand will be ready.
Step 2: Go to your bank, is good news that all banks in Nigeria allows approves POS agents and get details of the requirement and the good thing is that CBN allows agent to go any banks of their choose and to start a POS business without having an account with the bank.
Requirements For POS Business
Some of the required documents include;
- Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
- BVN
- 2 passport photographs
- 2 current account references
- Evidence of business registration (CAC Certificate)
- Tax Identification Number (TIN)
- Memorandum and Article of Association.
- Credit Bureau Report
- A minimum working capital of N50,000 or more
Step 3: I have said this much on this article, get a location where this business can thrive, strategic places such as bus stop, markets, close to a shopping mall, event centers. etc.
Go ahead to construct a mini shop or a get an umbrella with a table and a chair and a public banner displayed at the entrance to show that POS business is done there.
Then, for security measures, you can have a special purse/pouch around your neck or a safe with a solid lock to prevent theft and burglary.
Step 4: Start rendering a service as soon as your done with all these, make sure you don’t skip any of the step to avoid mistakes. Some of the services you render are as follows;
- Cash deposit and withdrawal
- Balance inquiry
- Funds transfer services (local money value transfer)
- Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
- Generation and issuance of mini statement
- Cash disbursement and cash repayment of loans
- Agent mobile payments/banking services
How Do POS Agents Make Money?
The question is how does POS agent makes money? One will ask how can i make money by been a POS retail agent, search no further, look below;
- Commission; Banks pay agents commission based on the volume of transactions carried out on their behalf.
- Float; Depending on your cash management policy, you can also make use of cash deposits, net of withdrawal for your primary business.
- Service Charges; By rendering service to customers, you can also charge them a particular amount especially on bills payments, taxes, and subscriptions.
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By operating this business, you are not only increasing your stream of income, but you are also serving the needs of the people in your community.
NOTE: Just know that POS business is an additional way of making extra income to your existing business, and the good thing is that this POS business can be combined with any business your doing, the only thing customers wants from you to patronize you all the time is make sure your always having cash at hand to give and a functional POS machine that does not disappoint on a regular basis, once you have conquered all this on daily basis you are sure of making extra income on your POS stand outside your main business.
The Importance Of POS Business Currently
The Importance of POS business in Nigeria cannot be overemphasized, it has help to reduce the work load on bankers in the bank, the era where you go to ATM it does not pay you and your stranded has gone. Any nearby POS stand can pay you at any time.
Also, There is more flexibility in banking halls now, which helps banks to pay more attention to new customers and other issues relating to banking which is not withdrawal or cash payment. Though that does not mean that a customer of a bank cannot go to bank to withdraw money or make a deposit.
