Do you know you can start a successful POS business in Nigeria? Maybe you’ve been thinking on a business to start with a little capital, well, you are in right place, in this article, I am going to tell you all what you want to know about POS business, how you can start up successfully, the requirements, guidelines, cost and the benefits of this business but before I proceed, let me quickly tell you the full meaning of POS and the definition.
Meaning of POS?
What does POS means? Though you may have been hearing about POS for a long time now but you may not know the full meaning of it, POS means Point of service or sale, which is abbreviated as POS, point of service or sale is a banking service that allows local debit cardholders make payment for goods and services mostly in a retail location. This service makes use of a POS machine in doing the transactions. POS service is a very good automated product because it decrease the stress and bulk of carrying cash around and it also helps in transacting directly with cash. This POS service is very fast and reliable because it gives instant notification of payment and transaction, it is seen when the customers receive alert whenever they do cash transfer with a POS agent.
This POS service is not only for payments and bank transfers, it is also customized for bill payment such as airtime ( recharge card printing) also for DSTV, GOTV, school fees, Rent,Tax payments and so on.
What are the advantages of this POS business
POS business have a lot of positive advantages which it gives to the individual business, there are many advantages in this POS service;
1. Its reduce bank stress; if you want to deposit, withdraw money instead of going to bank and queue for a long time, POS is there for you, so the business is very lucrative to invest into, it is due to increase in the number of customers who are patronizing the services on a daily basis to carry out their transactions and transfer. This business is thriving well on transactions, people now see it as a good substitute to banks cash withdrawal and transfer, if you invest your money on this business, you won’t regret.
2. Creation of jobs; This business have provided jobs to thousands of people especially young entrepreneurship and the business people who venture into it.
3. Less Capital; It requires less capital and will swiftly grow if you put all measures in place to start the business.
4. Increased account acquisition for the banks; POS services also help to increased account acquisition for the banks. So, If you have been looking for how to establish a POS business or you want to do a mobile ATM cash banking business in Nigeria, then this article will give you the full guide to start.
Now let’s discuss the steps to follow on how to start this POS business successfully in Nigeria
1. Get a Shop
In order to start this business, you need to get a perfect shop for the business and POS business does require a large space, a vendor or small place is just enough to start the business, and you have to situate the shop in a business and commercial area so as to increase patronization and profit. So, get a suitable shop for the business.
2. Get a good Location
Location is very important in POS business, you need to go for a business area that will increase in the number of your patronizers which will subsequently increase in your business profit, you can get your location at the open vendor and should be visible and accessible for customers. So, getting a good location can increase the number of customers that will be coming for the POS.
3. Start up Capital
Before you can venture into this POS business, you need to have a considerate capital which should be up #50,000. This money will cover the shop and it will also be for the withdrawal payment and also for the POS business purchase. So, you have to get the capital ready.
4. Getting The POS Machine
There are two ways of getting a POS machine, is either through banks or other financial agencies. The requirements business or individual must meet before being given the POS Machine and before you can be given the machine, you must have a registered business name, the business location, account number, a passport photograph, business email address and phone numbers and some other essential details. Once all the criteria is met, you will be directed to the bank account officer and your application will start processing within 72 hours from applying and then the POS machine will be delivered to you under 14 days and you will be required to sign a POS agreement document with the bank before handling over the device to you.
So, let me just tell you where to get this POS machine in Nigeria
Where to Get POS Machines
POS machines are only issued by banks and other financial institutions, so, these are the list of some prominent banks which offers POS services and to get the machines: Zenith Bank, Access Bank, Eco bank, Skye Bank, First Bank and so on. Bank charge you certain percentage for every transaction you make, it is important you known, POS machines offered by banks are issued out for free in line with the bank’s term and condition and their mode of operation. For instance, some banks can only give you when your customer base is from 1,000 and above and other condition may be if you can sale your products up to one million naira a day.
Costs of this POS machine in Nigeria
The price of this POS machine varies, its depend on the agent, company or bank you are buying from them and also the type of the machine you want. Though there is no specific price for POS, but the price range in Nigeria falls around 45k,75k to as high as 200k depending on the specification of the machine. Such variation may be like having 2G,3G and 4G, so, the higher the price the more compatible it is and better service.
Where can you setup the POS business?
Though there are some places you can set up your POS business but there are some good places you can establish your POS business that there will be more customers, the place like;
1. Near schools especially in University and college campuses, it will be a good advantage in establishing your POS business because many students engage a lot in school payment and transaction.
2. Also, places where ATM are always crowded or in places where there are shortage of banks or ATM post.
3. In a popular business premises like shoprite, supermarkets, malls and large vendors
4. Garage or bus stop area, travellers may be in needs of money and they may need POS to get the money they want.
So, in conclusion, POS business has become a very lucrative business for all entrepreneurs and it is a new modern ways of doing cash transactions. I hope this article has covered all what you want to know about starting POS business in Nigeria, you’ve known the benefits and the costs. With all these guides, I hope you will able to start this business successfully in Nigeria without no stress.