Business Ideas How to start up a POS business in Nigeria

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The POS business has to do with finance and must, therefore, be approached carefully. Besides, the Central Bank of Nigeria is very particular about the business entities that qualify to be agents. So, extra care is taken by before they authorise an agent for their retail banking.

To be eligible, 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. Then, you must have been as any of the following entities;

• Limited Liability Company
• Sole Proprietorship
• Partnership
• Cooperative Societies
• Public Entities
• Trusts or any other entity aside faith-based or NGOs.

As long as you have any of the above requirements, doing a POS business or serving as a bank agent is possible

Step 2: Approach A Bank​

Virtually all Nigerian banks allow agent banking services. As soon as you decide on the bank of your choice, the next thing is to approach the bank and get details of their requirement. The CBN guide allows being an agent for as many banks as you can serve.

You will need to fill some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN, internal criteria and agrees with you if you meet all requirements.

Also, you must have an account for a direct deposit for the business and provide some documents as part of the requirements for the proposal.

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)
• 
  
• Memorandum and Article of Association.
• Credit Bureau Report
• A minimum working capital of N50,000 Step3: Get The Equipment

Once your application is considered, the bank then supplies the needed tools and equipment for the business. Aside from the mobile phone, the following materials are usually provided by the bank:

• Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards.
• Card reader
• Barcode scanner to scan bills for bill payment transactions
• Personal identification number (PIN) etc.

Are you considering this business? Then visit to get the comprehensive guide which contains the cost breakdown of starting the business.
Step 4: Location
To thrive in the business, it’s advisable to choose a location with limited banks or places with few ATMs. Also, choose strategic locations like the bus stop, public market, event centers, etc. All of these factors will affect your daily profit.

Once you have a good location, construct a shed or shop but create enough spaces for swift movement for you and the customers. Have a banner displayed at the entrance to show the retail banking services you offer.

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.

Also, if you notice that an ATM is not dispensing cash, you can go there to advertise your service. Some people there in need of cash might subscribe to your service.

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Step 5: Render Services​

The business is rendered through POS terminals, card readers, mobile phones, and bank linked mobile wallets for real-time transaction processing.

As soon as you have these, the next step is to start providing the following services;

• 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

 

[Mataracy]

POS is a lucrative business and its profitable. What one need to do is that:
(1) Make sure you have capital or access yo loan to start the business.
(2) Make sure that you are qualify yo obtain it from the bank.
(3) Make sure that you have a good location to put the shop so that people will be able to see you and can have access to your shop at any point in time.
(4) The security of the shop is also very important because it's risky yo be holding cash without being secure.
(5) Punctuality is also very important . one need to be very up and doing .

 

[Deleted member 13140]

I don't really know about this though, well i will have to say the POS business is huge, and i don't think it has much competition yet, it's still not that filled up, and the reason why i think it's huge and also quite really profitable is because some time last week some one at the POS cheated me and i wasn't even aware. i felt so stupid when i found out, i wasn't aware because i was watching a YouTube video, she gave me 9k when i requested for 10 and i didn't even count and left with it, when i then had the time to count it was 9, and the thing is i didn't go back, i just ignored it because she obviously would say no because it has been 6hrs

 

[moonchild]

I commend you for this in depth article, POS is a very popular business in Nigeria, because a lot of people especially graduates are embracing the business and I think with s good location, profits will be really huge, the 100 naira per transaction will really add up, Any business that deals with daily income.is good venture because you'll be able to plan your budget effectively.

Security measures should also be put in place because some people are fraud inclined, they'll try to act smart by fake transfers, fake debits etc, the place you're operating the business should be secured also against vandalisers.

 

[nnamdieze21]

Pos is a very good business investment in Nigeria