Do you want to start a POS business in Nigeria from home and online to earn money, and the best banks and basic requirements needed?
If YES, then this is the only post to read.
If you want a business that lets you make money daily, consider starting a POS business in Nigeria.
POS is a profitable business that enables you to offer diverse services like cash withdrawals, airtime purchases, payment of various bills, money transfers, and deposits.
Some POS businesses can even help you open a bank account without visiting the bank.
The POS business is pretty easy to start, and we’ll go into detail on how you can get started as we proceed with this article.
What is POS?
Often, we hear POS, but many don’t know what the full pronunciation and meaning is.
Now, POS means “POINT OF SALE,” and it is a place where transactions are carried out for payments of goods and services.
Also, a POS transaction can occur offline or online, and receipts can be printed or created electronically.
Individuals and businesses like retail outlets, dining establishments, pubs, hotels, and e-commerce websites use POS services.
They usually have a computer, a cash drawer, and a barcode scanner.
They can be connected to other systems, like accounting and inventory management software.
Benefits of Starting a POS Business in Nigeria
Starting a POS business in Nigeria has so many benefits.
Here are some of them below:
- Low capital startup (as low as ₦50,000).
- Huge customer base.
- High-profit margins. POS agents can make up to 5% on each transaction they carry out daily.
- Requires no technical skills. You only get directions on how to operate the POS machine, which an illiterate can do.
Disadvantages of POS Business in Nigeria
The POS business in Nigeria has several advantages, but there are also some disadvantages to be aware of.
Here are the most common disadvantages of the POS business in Nigeria:
- Adaptation of bad spending habits.
- Customer information is at risk.
- Delay in the reversal of money.
- Difficult Customers.
- Dishonest staff.
- Expensive web-based fees.
- Fraudulent machines.
- Hardware-related issues.
- High cost of service.
- Increase in crime rate.
- Network issues.
- Poor revenue because of oversaturation.
- POS operators are at risk of being robbed or defrauded.
- POS machines can also be hacked, which can lead to financial losses for both the operator and customers.
Best POS Machines in Nigeria
Here is the list of the best POS machines in Nigeria at the moment:
These are some of the best types of POS machines you can use to set up your POS business.
They are pretty affordable to purchase and don’t charge more for transactions.
Before choosing a POS machine, consider these things:
- Your Business Type: What services do you want to offer to clients using the machine? For instance, if you run a restaurant business, go for a POS machine that has more specifications than a retail POS machine.
- Features: Check the features of the POS machine to be sure it can offer effective services to your customers.
- User Friendly: Can you navigate through the machine without stress? Is the screen size, good enough? How about the buttons and everything about the interface?
- Cost and Security: Go for the one that has all the features you need and is also affordable. Ensure your data is safe with anyone you’re going for.
- Customer Support: Choose a POS machine that the company has their customers’ interest at heart. A time will come when you will need urgent attention, and when there is no efficient customer support team in place, it may cause some damage to your business.
Best Bank for POS Business in Nigeria
The best bank for the POS business in Nigeria depends on several factors, including your specific needs and preferences.
Here is the list of the best banks for POS business in Nigeria:
- Access Bank
- First Bank
- Wema Bank
When choosing a bank for your POS business, consider these factors:
- Fees: Banks charge different fees for POS services. Compare the fees charged by different banks to find the best deal.
- Commission Rates: Banks offer different commission rates to POS agents. Compare the commission rates offered by different banks to find the best deal.
- POS Machines: Banks offer different POS machines. Choose a POS machine that is easy to use and has all the features that you need.
- POS Terminals: Banks offer different POS terminals. Choose a POS terminal that is compatible with your POS machine and that has all the features that you need.
- POS Software: Banks offer different POS software. Choose POS software that is easy to use and has all the features that you need.
- Customer Service: Banks offer different levels of customer service. Choose a bank that offers excellent customer service in case you have any problems with your POS business.
Also ask other POS agents for recommendations on which bank to choose.
They can tell you about their experiences with different banks and help you choose the best bank for your needs.
Once you have chosen a bank, open a business account and apply for a POS machine.
The bank will then provide you with training on how to use the POS machine and software.
Steps to Starting POS Business in Nigeria
Here are the steps to start a profitable POS business in Nigeria:
1. Pick a Business Name and Get Registered
Once you’ve researched how the POS business in Nigeria works, the next thing to do is pick one for your business.
After that, register with CAC if you have enough funds for that.
Doing that is not compulsory, but you should because it gives your business legal backing.
2. Get a Good POS Machine
We believe by now you already know the different POS machine companies in Nigeria and the best ones to go for.
Get the POS machine of your choice with good specifications in mind.
Ensure the POS machine has all the features that allow for effective services to your customers.
Find a suitable location where your target audience lives and start your business.
Places like a busy street, university student’s residence, a market, or even close to a restaurant or bar is perfect for business.
If you don’t have money to rent a shop, buy a table, three chairs and an umbrella to shield you from the sun and rain.
Meet an excellent graphic designer to design and print a banner for your business.
4. Promote Your Business
Without promoting your business, no one says that customers will not come.
Promoting your business is essential for more customers to know your services.
Make your banner big, print hand flyers, and share them at the start until you have plenty of customers patronizing your POS business.
POS Business Cost
To start a profitable POS business in Nigeria, you need enough capital.
The cost of starting a POS business in Nigeria will vary depending on several factors, including the size and location of your business and the level of service you provide.
The first budget should be for the POS machine, payment for location, and getting a table, chairs, and an umbrella if you are starting in an open place along the street.
Expect to spend within ₦50k to ₦500k to start your POS business in Nigeria.
It is possible to use less if you already have other things you need for the business, like location, POS machine, registration, etc.
Starting a POS business in Nigeria that makes daily income is one of the best things you should do this year and beyond.
Many people said this business is becoming saturated, but that’s not true if you learn how the industry works and how to attract customers.
You can make so much money running a POS business in Nigeria if you follow all we shared above.