As the numbers of bank customers continue to increase, it is becoming a problem that customers have to spend lots of profitable time in the bank try to make one or two transactions. In solving this problem, banks have been trying so hard to put up measures to ensure easy and quick transactions for customers’ convenience. One of these strategies is the introduction of the Point of Sales (POS) machine.
The POS machine has aided so many business owners and customers to partake in the modern cashless policy. Customers who do not have cash at hand but only in their bank accounts can now purchase goods and services at stores and other business organizations with ATM cards provided the business owners make us of POS machines.
In every given chance, there is an opportunity which means you can now be your own boss simply by the use of POS machine. In this post, I shall be sharing with you a complete guide on how you too can set up your own POS business in Nigeria.
What Is POS Business?
Firstly, POS is the acronym for Point Of Sales and can also be referred to as POP that is Point Of Purchase.
POS business also known as the agent banking business is a type of business that involves enabling customers to make payments with the use of your POS machine of which you get commission of a certain percentage known as the convenience fee.
With the service you offer, customers can be able to transfer money, pay for cable subscriptions like DSTV, Gotv, Startimes etc and even pay for NEPA bill. If you have some funds in your office, you can also enable customers to withdraw from you that is they transfer money into your account and you give them the money cash.
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How profitable is the POS business?
POS business is very lucrative and can earn you huge profits if you follow this guide properly and most importantly with God by your side.
POS machine commissions
You get N150 per transaction for cash withdrawal, transfer and deposit. For bill payment such as DSTV, Gotv, Startimes, Electricity etc you get 2% commission.
One amazing thing is that you can also venture into recharge card business using this platform of which you shall getting mouthwatering commission such as 3%, 6%, 3.5% and 4% for MTN, Glo, 9mobile and Airtel recharge cards respectively. Of course, you will also get commission for data bundles like 3%, 4%, 4.5%, 4%, 3%, 4% for MTN, Glo, 9mobile, Airtel, Smile and Spectranet data bundles.
In future posts, I shall be giving you the complete guideline on how to start recharge card printing business. All you have to do is keep visiting this blog and subscribe to our newsletter or follow us on Facebook, Twitter, Instagram and Pinterest @ TheNaijaGuide.
Now let's continue
You can be making more than ten thousand naira every day in this business and as we go on I shall be explaining to you the reason why this is possible. So just relax and let us continue step by step.
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Requirements Needed In Starting POS business in Nigeria
To start a profitable point of sales business, you will be needing
1. POS machine
2. Convenient location
3. Business Poster or Banner
4. Cash at hand (optional)
1. POS machine: this is the heart of the business. If you do not have a POS machine, then you can not set up this business.
You can obtain POS machine for free from any Nigerian bank you operate with though each bank has its own terms and conditions or from other trusted agencies like InterSwitch.
It costs about N100,000 to purchase POS machine but you can still obtain it from any Nigerian bank you choose to partner with.
All you have to do is visit the bank, request for the POS machine from the account officer. An application form will given to you and you will also be directed on the method of submission.
Fill the form appropriately and submit it. You shall be informed in due time maybe about 2 weeks that the your request for a POS machine has been granted and shall be sent to the business address you stipulated in the application form.
Endeavour to inquire the bank's terms and conditions from the account officer as well as the commission rates just to be sure it has not change.
2. Convenient Location:
I describe this factor as the neck of POS business. You have to be wise in your search for a suitable location for this business.For profitability sake, choose a location that is far from any bank or ATM machine around. This is the main aim why clients would visit your office.
Areas where ATM are always crowded is also profitable for POS business. As a result of overpopulation and insufficient ATM machines, individuals in that locality are often faced with ATM machine's insufficient funds problem so they would have no choice than to patronize you.
In short, target overpopulated areas with less banks and ATM machines. Market areas and developing towns are great locations to inquire.
3. POS business poster or Banner:
The use of Poster or Banner in POS business is just an advertising strategy to inform people about your business and the various services you offer. A good graphics designer can help with the design.Make the banner large and attractive so it can be easily noticed. Ensure to include the logo and name of the bank you are partnering with.
4. Cash at hand:
This refers to the amount of money you have in your possession at the office.I said it is optional because it primarily depends on whether you would like to add withdrawal of cash to your business services.
You can decide to start with N50,000 - N100,000. As your business continues to grow, you can increase the amount. With time, you can be running huge transactions with wealthy people in that area.
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Wrapping up: how to start POS business in Nigeria
POS business is a lucrative business that has not become as popular as other top businesses in Nigeria. Entrepreneurs who have seen the awesome advantages of this business are currently testifying to the beauty of their monthly earnings.With this business, you will be able to save people the stress of queuing at the ATM machine and banks. You also saved them the trouble of transportation to banks to carry out transactions you offer.
The major problem associated with this business is the problem of network failure of the POS machine. So you have to improvise with your smart phone as the need arises.
There you have it How to Start a Profitable POS Business in Nigeria. if have questions or any additional information that is useful to the cause of this article, please comment using the comment box below and remember sharing is caring.
