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How to Start a POS Business in Nigeria 2024 (Full Guide)

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The POS business, also known as the agent banking business, is one of the easiest and legal means to make money in Nigeria even as a student. If you are looking for How to start a POS business in Nigeria,  you are on the right page.

In this modern day, POS outlets are found in every corner of the streets or communities,  these outlets allows customers to perform different financial services like money transfers,  deposit and withdraw money, airtime and data top-up etc.

In this article,  we will explain how to start a POS, eligibility requirements,  benefits of being a POS agent, best POS service providers and many more.

What Is POS?

Point of sale popularly know as POS is a time and place where retail transactions are carried out. At this Point of Sales, the agent or merchant calculates the total amount owed by the customer and give them Machine to make payment with there debit cards.

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Who is a POS Agent?

Point of sale (POS) agent are those POS owners you see in your area that helps you carry out basic banking services like money transfer, deposit and withdraw cash,  airtime and data top-up etc.

History of POS Business in Nigeria

Point of Sales business (POS) started after the Central Bank of Nigeria implemented the agent banking system in 2013. The essence of this agent banking system is for financial service to reach people in debanked  and rural areas. Point of sale business have helped Nigerian in both rural and urban areas,  people don’t necessarily need to queue in the bank to transfer,  deposit or withdraw money.

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Cost of  POS Business in Nigeria

It’s is very easy to start pos business in Nigeria, it all depends on how big you want to start. You can start the business with minimum of #50,000 cost of machine and customers payment inclusive.

How to start pos business

How to Start POS Business in Nigeria

Below are the basic steps you need to take if you are interested in starting up a POS business:

  1. Make thorough research on POS business, how it’s being done, and requirements before venturing into it.
  2. Raise enough capital required to start the business. The minimum cost to start the business in Nigeria is #50,000.
  3. Look for good location to set-up your business. We usually advise you look for location close to student area or market..
  4. Select good POS service providers that aligns with your business goal.
  5. Buy a POS Machine from any service provider pf your choice.
  6. Do the necessary registration with your service provider and submit important documents.
  7. Advertise your business through various channels like printing of flyers,  social media and word of mouth etc. Highlight the features of you business and benefits to attract customers.
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Requirements to Start a POS Business

Below are some of the basic requirements to start a POS business in Nigeria.

  • A physical location i.e Shop, Kiosk or Market stall.
  • Business Name.
  • Full Name.
  • Mother’s Maiden Name.
  • Date of Birth.
  • State of Origin.
  • Phone Number
  • Bank Verification Number (BVN).
  • Passports
  • Utility Bill Receipts
  • NIN or any Government Issued ID.
  • House Address
  • Next of Kin Phone number and House Address.
  • Money for POS terminal machine.

Popularl POS Machine Used in Nigeria

When it comes to POS Machine, consider selecting the best. This are some of the best POS Machine used in Nigeria.

  • Moniepoint POS
  • Opay POS
  • Palmpay POS
  • Baxi Box POS
  • Paga POS
  • MoMo Pos
  • Firstmonie POS

Frequently Asked Questions (FAQS)

How much capital do I need to start a POS business?

The capital needed to startup POS business varies by individual,  but the most is improving thing is to have money for terminal machine and money to pay customers.

How long does it take for service providers to approve my business?

There is no specific time frame,  it can take 2 days or more. It varies by service provider company.

What challenges should I expect in the POS business?

Common challenges like, bad network, security issues and competition from competitors.

Can I operate a POS business without a physical shop?

It is advised to have a physical store, it ensures secure and accessible Point for customers to carryout transactions.

 

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