Starting a POS business in Nigeria can be an exciting and lucrative venture. With its large population, the potential for success is tremendous. But before you get started, there are a few important steps you must take.
Are you looking to start a Point of Sale (POS) business in Nigeria? If so, you’ve come to the right place! Starting a POS business in Nigeria can be a rewarding venture and can open up a new revenue stream for entrepreneurs.
In this guide, we’ll cover everything you need to know about setting up a POS business in Nigeria, from understanding the regulatory framework to choosing the right hardware and software. By the end of this guide, you should have all the information you need to make an informed decision about whether or not starting a POS business in Nigeria is the right choice for you. Let’s get started!
What is a POS system?
If you’re looking to start a POS (Point of Sale) business in Nigeria, you may be wondering what exactly it is and how it works. A POS system is a combination of hardware and software that helps businesses complete sales transactions and accept payments.
In Nigeria, the most popular POS systems are operated by banks, payment processors, and online merchants.
When customers make purchases, they can use cash, debit cards, credit cards, mobile payments, or even cryptocurrency to complete the transaction.
This is usually done by connecting the customer’s payment information to the POS system, which then processes the payment. The POS system also stores the customer’s data for future transactions.
In Nigeria, setting up a POS business is relatively straightforward. The first step is to choose a payment processor or bank that offers POS solutions. After that, you’ll need to acquire the hardware, such as a card reader, receipt printer, and cash drawer, depending on the type of POS system you choose. You’ll also need to install the required software and configure the POS settings to your preferences.
Once you’ve set up your POS system, you’ll need to register it with the appropriate financial institution or payment processor. This will help ensure that all transactions are secure and compliant with Nigerian laws. Finally, you’ll need to market your POS business and make sure that potential customers are aware of the services you offer. This may seam simple but it’s actually harculean.
The benefits of having a POS system
Having a POS system in Nigeria is a great way to increase the efficiency and profitability of your business. It can help you streamline sales and increase customer satisfaction, as well as make it easier for customers to pay for their purchases. But what exactly are the benefits of having a POS system in Nigeria? Other notable benefits include;
source of income for both agents and Marchants, aiding fast transactions, and lastly
It provides financial liberation to agents and on the other hand provide easy financially accessible transactions for customers.
Overall, having a POS system in Nigeria can provide many benefits for both you and your customers. If you’re considering setting up a POS system in Nigeria, make sure to take into account all of the advantages it can offer.
Is POS business profitable in Nigeria?
The answer to this question is yes. POS is almost the most profitable side hustles in Nigeria. An average agent earns nothing less than 20,000 Naira within 12 hours depending on their location.
Services offered by POS in Nigeria
A Point-of-Sale (POS) business is an excellent opportunity for entrepreneurs in Nigeria. POS systems provide businesses with quick and easy payment processing solutions, eliminating the need for cash registers and providing a secure way to accept payments.
When setting up a POS business in Nigeria, it’s important to understand the services that are available and how they can help your business.
Here are some of the services offered by POS systems in Nigeria:
- Merchant account – merchant accounts allow you to make electronic transactions using a credit card terminal or mobile device;
- Mobile app – this is software that allows customers to pay at your place of business with their phone;
- Payment gateways – these companies connect banks and businesses so merchants can use their bank account number without sharing sensitive information like account passwords;
- Card readers – these come in many different types including contactless, chip & pin and swipe card readers;
- Software – point-of-sale software allows you to track inventory, set prices and more through a computer program instead of manually entering numbers on paper records or receipts.;
- Financial institution integrations – this provides another layer of security for transactions which means less liability risk as well as less work on the front end as it’s all handled automatically behind the scenes.;
- Hardware – printers, card terminals, barcode scanners, and other devices that help keep your transaction process running smoothly.
What are the services offered by POS agents to customers in Nigeria?
They are numerous financial services offered by POS agents in Nigeria. Some of these services include;
- Fund transfer
- Fund deposits
- Payment of Utility bills including, TV, electricity Data subscription and few others.
- BVN enrollment
- Opening of bank accounts
To be successful in starting a POS business in Nigeria you will need reliable hardware (POS TERMINAL) and also have enough staff members who are knowledgeable about managing the system effectively and efficiently. Many people choose to partner with larger providers because they offer additional services such as marketing assistance, training, customer service reps and technical support. With all of these options available today it is easier than ever to start a POS business in Nigeria!
List of POS service providers in Nigeria.
POS Service providers can be categorized into two bodies; banks and corporate financial institutions
Banks that offer POS to agents
The following are the list of banks that offer POS service in Nigeria.
- Access bank
- First bank
- Wema bank
- Guarantee Trusted bank ( GTB)
- Eco bank, to mention but a few.
Can you start POS with 50,000 Naira?
Starting a Point of Sale (POS) business can be a lucrative venture, as there is an increasing demand for payment solutions. But if you’re wondering if it’s possible to get started with just 50,000 Naira, the answer is yes!
How much does it cost to start a POS business?
Starting a Point of Sale (POS) business in Nigeria can be a great way to make money while also providing a valuable service. But it’s important to understand the costs associated with starting a POS business before taking the plunge.
The first step to setting up a POS business is to acquire the necessary equipment. This includes the POS terminal, printing slip, and any other accessories needed to provide payment services. Depending on the type of terminal you choose and the number of items needed, the cost can range from a few thousand to tens of thousands of Naira. You will also need to purchase an internet connection or a point-of-sale SIM card, which can add to your total costs.
You will also need to invest in merchant accounts to process payments. Depending on the provider you choose, fees can range from a few hundred to several thousand Naira per month.
Additionally, there may be one-time setup fees.
Other costs include building kiosks, and marketing to let potential customers notice your business, as well as undergoing maintenance and repairs for your equipment.
Finally, if you plan to operate on a larger scale, you may need to hire staff and rent physical space for your business. This could cost anywhere from a few hundred Naira per month up to several thousand depending on the size and location of your business.
Overall, setting up a POS business in Nigeria can range from a few thousand Naira to tens of thousands depending on the scale and type of business you wish to operate.
Guide on how to become a POS agent in Nigeria
Are you looking to become a POS (Point-of-Sale) agent in Nigeria? POS is an increasingly popular way to pay for goods and services, offering customers a fast, secure and convenient payment experience and make side hustle money. If you’re interested in becoming a POS agent, this guide will help you get started.
The first step to becoming a POS agent is to register with one of the many payment service providers (PSPs). These PSPs are companies that provide the technology, services and support necessary for merchants to accept payments from customers via POS machines. They include banks and corporate organizations listed above. There are many PSPs operating in Nigeria, so take your time researching which one best fits your needs.
Once you’ve chosen a PSP, you’ll need to complete an application form, typically online. You’ll also need to provide the PSP with a valid ID, proof of residence, and proof of business registration documents.
Next, you’ll need to purchase the necessary POS machine(s) from the PSP. The PSP should provide training on how to install, configure and use the machine(s). After this, you’ll be ready to start accepting payments.
As a POS agent, you’ll be responsible for servicing the merchants you work with, including installation and repair of POS machines. You’ll also be responsible for collecting payment fees from merchants and transferring them to the PSP.
Finally, it’s important to keep up-to-date with any new developments in the world of payments. Staying informed will help ensure you’re providing the best service to your merchants and their customers.
By following this guide, you can start your journey to becoming a successful POS agent in Nigeria. With the right attitude and commitment, you could soon be helping customers make secure payments quickly and conveniently and thereby making your passive income.
Thanks for reading!