Step-by-step plan on how to start a POS agent business in Nigeria with the basic things you need to get started, make money on daily basis in Nigeria
Steps on How to Become Successful POS agent.
PREAMBLE
POS business is now one of the most profitable business ventures any entrepreneur can start, whether you're in the village, FCT Abuja or Nigeria’s commercial capital, Lagos.
This business is becoming more lucrative partly due to the lack of access to banks within rural communities and some urban areas too.
Once you have a good location and you have built trust with the people around you, you can be making as much as ₦8,000 to ₦10,000 Naira every day.
As I always say, It's a great idea if you think about starting your own business because it will have impact in your life and others around you.
Are you considering to start the POS agent business in Nigeria? You are on the right page.
In this article, I have highlighted a step-by-step plan on how to start a POS agent business in Nigeria with the basic things you need to get started.
What is POS?
POS means Point Of Service or Point Of Sale. POS is a banking service that allows ATM card holders to make payment for goods and services mostly in a retail location.
This service makes use of a POS machine in doing the transactions..
Advantages of Starting POS Agent Business in Nigeria.
There are a lot of advantages in starting a POS agent business in Nigeria, just like every other businesses. But I will only share two notable ones:
- Low start-up capital
- Unlimited customers
1. Low start-up capital: POS business does not require huge amount of money in order to start. With just 50,000 you are good to start.
You don't even need a big or fancy shop to run your POS business. A table and chair with an umbrella or a wooden shed is enough to keep your POS business running.
2. Unlimited customers: As a POS agent, you can make unlimited transactions in a day and run into large profits.
It is easy to make profit with this business as the target market is a large subset of the Nigerians.
How Do POS Agents Make Money?
POS business has provided job opportunities and financial stability in Nigeria by helping agents make money in three different ways;
Commission: Firstly, banks pay agents commission and this commission is based on the volume of transactions you carried out on their behalf.
Service Charges: Secondly, you also make money by charging a particular amount on each transactions like: bills payments, taxes, and subscriptions.
Float: Depending on your cash management policy, you can also make use of cash deposits, net of withdrawal for your primary business.
One thing I love most about this POS business is that, you are increasing your stream of income on a daily basis and you are also serving the needs of the people in your community.
How to Become a POS Agent in Nigeria
The steps of starting a POS business is easy and can be completed within 2 weeks to a month, provided you meet the requirements by the host bank.
1. The capital
As we also know, the first thing in starting a business is the capital and the capital required for POS business in Nigeria is low, as i have said earlier. Topically 50k
You also don't have to worry about a big shop with expensive furnitures and fittings. A portable store with a clear advertisment of your services in front of it is perfect.
I don't even think a store is needed for this business, a table and chair with an umbrella or a wooden shed is enough to start making money. Or what do you think? Drop a comment below this post.
2. Perfect Location
To be sincere and straight forward, a perfect location is the key to become successful with POS business in Nigeria.
I will advise you to choose a location with limited banks or places with few or no ATM machines.
Search for crowded areas with pedestrian traffic such as:
- Markets placeso
- Motor parks
- Residential areas
- Bus stop
- Event centers, and so on.
All of these pleases will affect your daily profit. For security measures, you can have a special purse around your neck or a safe with a solid lock to prevent thefts.
Have a banner displayed at the entrance to show the retail banking services you offer.
3. The Bank Requirements.
You must meet up with some requirements. Number one, you must have an existing business of any type (in operation for at least 12 months).
Number two, you must have a shop or office from which you operate.
Central bank of Nigeria took several precautions to ensure the integrity of those who will qualify to be agents.
Why? Because Financial services are a sensitive area of life.
4. Apply For Your POS Machine
Approach your existing bank or any bank of your choice to get the full details of the requirements.
It depends on the bank and the type of account, you can either get the POS machine leased, bought, or even for free.
You will need to fill some necessary documentation and wait for your application to be approved.
Some documentation you may need include:
- Valid means of identification such as a Driver’s license, National ID Card, Voter’s ID Card, etc.
- Passport photographs
- Bank Verification Number
With a minimum capital of ₦50,000 naira
You will receive the POS machine and start to make money instantly, once your application is approved.
Here are some POS agents you might like to consider;
- OPay POS
- Bankly
- Monie Point POS
- Firstmonie POS
- Kudi POS
- GTB POS
- Pay force
- Paga
- Zenith Bank mobile money agent
- Access Bank CLOSA agent
- Quickteller Paypoint
- Ecobank Xpress point
- Baxi Box
- UBA POS
Services offered by POS agents in Nigeria
The POS service is beyond sending and receiving money for customers, here are some of the services offered by POS agents in Nigeria.
- Opening a bank account
- Withdrawing money from any bank account
- Depositing money into any bank account
- Paying utility bills such as electricity, Gotv, School fee airtime and so on.
- Enrolling for Bank Verification Number (BVN)
- Selling of recharge cards
- Collecting daily contribution money or
- Coordinating savings from group of people "Ajo"
Have a banner displayed at the entrance to show all the retail banking services you offer.
Let us know what you think about this business, kindly share your experience with us or ask any question with the comment box below. Thank you
COMMENTS