This is a complete guide on how to start a POS business in Nigeria.
POS stands for Point of sale. When POS is mentioned, the first thing that comes to mind is easy access to cash without having to go to the bank.
The issue of paying your way to the bank, or ATM stand, then stand in queue for a long time just to withdraw money or perform minor banking transactions, necessitated the advancement of POS business in Nigeria.
POS is referred to as agents banking business ventures in Nigeria, and it involves dealing with funds withdrawals, deposit, transfer and even paying of bills, etc.
POS business is a good choice of investment in Nigeria, as it is a very lucrative business anyone could start.
If you wish to learn how to start a POS business in Nigeria, this article will be helpful to you.
In this article, I will be showing you how to start a POS business in Nigeria.
Table of Contents
Steps to starting a POS business
Starting a POS business is very easy in Nigeria. Below are the steps to start a POS business in Nigeria.
1. Source for capital
Sourcing for capital is key when going into any business, and this also includes a POS business.
As the saying goes, “It takes money to make money,” you will need capital before you can start your own POS business in Nigeria.
POS business in fact doesn’t only require capital to kick-off, but also a steady source of income to be maintained at the beginning.
2. Visit A Bank
Visiting a bank is quite easy when you already have a bank of your choice in mind.
But it’s ok if you don’t have any bank in mind because almost all banks in Nigeria allow agent banking services.
Therefore, you can pick any bank you like, and go there to get the necessary requirement you need to become their representative.
At the bank, you will be given some agreement/document which you will be required to fill, sign, and submit to the bank.
Other documents that may be required from you include:
- A valid means of identification (This may be a Voters Card, National Identity Card, Drivers License, or International Passport)
- Evidence of business registration (CAC Certificate)
- BVN
- Current account references
- Tax identification number (TIN)
- Working capital of ₦50,000 (Minimal)
3. Get The Equipment
After your successful application with the bank you intend to be their agent banker, the bank will provide you with the equipment and tools for the POS business.
Below are some of the equipment that you will be given by the bank.
- Point of sale terminal
- Card reader
- Barcode scanner to scan bills for bill payment transaction
- Personal Identification number
4. Location
Businesses like POS thrives where there are no banks or ATM stands close by.
People are the main target here so the location should be at a place where people are always likely to gather together.
Public markets, event centers, bus stops, etc, are examples of places you may site your POS business. The shop should be in the open and should be easily accessed by people.
One more thing to note when picking a location for your POS business is that you should never site your POS business where thieves and hoodlums operate.
5. Strategy
POS business in Nigeria is gaining ground because it is a very lucrative business in Nigeria.
Hence, if you want to grow well in the business you’ll need a business strategy.
You could either develop an excellent customer relation or reduce your charges to attract more customers.
Bear in mind that you can place your charges based on the amount withdrawn.
POS Machine
POS machine is a portable device that allows individuals and organizations to accept debit card payments for transactions. This machine is the key equipment in the POS business.
In this section, I will explain the types of POS machines, the cost, and the criteria for getting a POS machine in Nigeria.
Types of POS machine
Before going to make inquiries on how to get a POS machine for your POS business, it is advised to have a little knowledge of the type of POS machines available in Nigeria.
There are various types of POS machines, below are some of them.
1. Retail POS machine
This is a large and more computerized machine. It has software and is specialized to connect through a gateway.
They are the most suitable for high traffic stores, like, restaurants, museums, etc. This is the best option if you need inventory tracking management software.
2. Mobile POS machine
This one is hardware and can be attached to a merchant’s phone in a situation where the merchant is in a non-stationary position, like a food truck for example.
In this machine, the hardware is coupled with an app that is downloaded on the device with the aim of providing an interface of the device for both user and administrator.
3. Countertop POS machine
These machines are in most cases stationary and connected through a dial-up connection. They are economical and have the easiest ways to process credit cards.
How Much Is POS Machine in Nigeria
A POS machine on Jumia costs between ₦50,000 to ₦200,000.
1. Veeda Smart POS machine
Features and specialization
- Intel professional POS industrial motherboard
- Intel Atom D525 Dual-core, 1.8Gz central processing unit
- Direct Rambus (DDR3) 2GB RAM memory which can be expanded to 4GB
- Waterproof
- Weight of 3kg
- Price range: Starting from ₦218,000
2. Touchscreen Retails / Restaurant POS machine
Features and specialization
- Intel Fanless CPU
- 320GB storage and 2GB
- Works with window 7 or 10
- Tracks customer info and purchase history
- Weights over 0.5kg
- Single resistive touch screen
- Price range: ₦163,000
Requirements To Get A POS Machine In Nigeria
To get a POS machine in Nigeria, below are the requirement needed.
- A registered business name
- A business location
- An account number
- A passport photograph
After meeting these requirements, your application will be processed within 72hrs of applying by your account officer.
How To Get POS Machine From Banks In Nigeria
Unless you intend to buy a POS machine yourself, you can get one from the banks.
Getting a POS machine from the bank is completely free. What this means is that you won’t need to pay any money before you are issued a POS machine by the bank.
Below is how to get a free POS from some Nigerian bank.
1. First Bank
To obtain a POS machine from First Bank, you need to first of all, have an account with them.
Then visit the retail department of any First Bank branch, a POS request form will be given. This organization makes available the POS machine for free collection within a week.
2. Zenith Bank
Zenith banks require a current account held for a minimum of 6 months before your application. You will have to fill out POS form and emailed it to possupportunit@zenithbank.com.
Other requirements are:
- Business owner account number
- Business email account
- Phone number and minor details
3. Guarantee Trust Bank
To apply for agent banking in GT Bank, you will need to have a current account that has been opened for not less than 6 months.
You will be issued a form which you will have to fill out and email to sme@gtbank.com, and you will also be required to fill a POS agreement form.
4. Polaris Bank
Getting a POS machine from Polaris bank is very easy because they allow both current and savings account holders to apply for their POS machine.
All that’s needed is to fill out an agreement form and you will be given the machine within 14 days.
Other financial institutions that provide POS machines for free include:
- FCMB
- Access bank
- Opay
- Quickteller
- Paga
POS Business Services To Render
The services provided by agent banking are numerous.
Some of them include:
- It saves time and energy
- It makes money transactions quick
- It cuts down the risk of moving around especially long-distance with cash
- It lessens the congestion at bank branches
- It creates job opening as it’s not a one-man business
- It serves a wider range of customers
- Customers without cash can still purchase items of their choice
By starting a POS business, you will be dealing with people a lot, and such your services will determine if they will be back to continue business with you.
Hence, ensure you are polite and patient with your customers.
That’s all on how to start a POS business in Nigeria. I hope this article on how to start a POS business in Nigeria helps?
