A lot of people all the country are now venturing into the POS business with majority of these people being the youths and so it is no surprise if you are looking for guide on how you can easily start up your own POS business in Nigeria 2022.
The POS business has helped a lot of people to be able to fend for themselves and their families as people now prefer going to the POS to perform some transactions instead of going to the bank since the POS business has been approved by the CBN and also the commercial banks.
Initially, to withdraw or transfer money, people will have to visit the Banks ATM before they could withdraw or transfer money but now, they can perform any transaction with the POS like withdrawal, transfer, deposit, checking account balance, bill payment (utility, cable TV) and some other online transactions.
So in this article, we will be showing you every easy step on how to can start a POS business in Nigeria 2022.
So take your time to read the article with rapt attention as we show you how you can start up successfully.
Requirements To Start POS Business In Nigeria
Like we have said earlier that the POS business in Nigeria is a profitable business which you can start up if you have the basic requirements which is needed to start up the business.
To be eligible to start a POS business in Nigeria:
- You must have an existing business in operation at least for 12 months. You are also expected to have a shop or office from which you operate.
- You must have been registered with the Corporate Affairs Commission as any of the following:
- Sole Proprietorship
- Limited Liability Company
- Public Entities
- Cooperative societies
- You must have a means of identification like National ID card, International passport, voter’s card or driver’s license.
- Bank Verification Number
- 2 passport photographs
- Evidence of business registration (CAC Certificate)
- Tax Identification Number (TIN)
- 2 current account references
- Memorandum and Article of Association
- Minimum working capital of N50,000
- POS terminal
- Card reader
- Barcode scanner to scan bills for bill payment transactions
- Credit Bureau Report
Some fintech companies offer free POS machines to entrepreneurs and you must meet specific requirements for you to get one.
How Much Does POS Machine Cost In Nigeria?
If you don’t have any fintech company to get a free POS machine from, then you will have to buy one. The cost of the POS machine depends on the company or bank that you want to buy from or work with.
The price for POS machines ranges from N45,000 to N75,000 and in some cases, it could be from N100,000 to N200,000.
The difference in the prices could also be as a result of the specific features of the POS machines; maybe screen touch, network service and so on.
Where To Get POS Machine In Nigeria 2022
Now that you have known the cost of POS machine in Nigeria, you might be wondering where you can get a POS machine. You can get a POS machine from either a bank or a fintech company.
Some of the popular providers are:
- Access Bank CLOSA agent
- Baxi Box
- Ecobank Xpress Point
- Firstmonie POS
- GTB POS
- Kudi POS
- Monie Point POS
- OPay POS
- Pay force
- Quickteller Paypoint
- UBA POS
- Zenith Bank Mobile money agent
These are the best POS machine providers based on research although there are other providers we didn’t mention.
How Do You Make Money From A POS Business In Nigeria?
As a POS agent, you make money from the commission you get from every customer that comes to use your POS machine. So for every transaction performed with your POS machine, there is a commission.
So if a customer comes to withdraw N5,000, you will charge N100 for the transaction and share it with your POS provider. You can take N60 as your commission while the bank or the company take N40.