Try to look around. What do you notice? Several POS kiosks right? The reason for this is because, POS business is the new oil well in Nigeria. In fact, as at the time of this article, it is considered one of the most lucrative businesses in Nigeria.
Have you even ever wondered why people open several POS kiosks everyday? The reason for this is not far-fetched. It is a good way to make money. If you are on this page to learn how to start a POS business, count yourself lucky. This is because we will teach you all that you need to know about starting a POS business successfully in Nigeria. Without further ado, let’s get to business.
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The POS business also known as Point Scale Business, was started in the year 2013. This was after the CBN released certain guidelines on the management and operations of the business. Immediately after this, POS has been one of the retail channel several banks use as a medium to make their banking services available to a large number of people
If you are looking to start the POS business, get a POS machine for your business, it is advisable to consider areas that are unbanked or underbanked. This way you are going to have a massive influx of customers.
Before you can start the POS business, it is important that you are first accredited as an agent. As an agent, you will own and operate a retail outlet. In this outlet you can conduct financial transactions such as withdrawal, deposit, transfer, airtime recharge, utility recharge, amongst others.
So, the question is how can you start the POS business? You will definitely find this out in the next section.
How to start a POS business in Nigeria
To start a POS business in Nigeria, you must fulfil the following criteria:
1. Have an existing business
The POS business has to do with money. For this reason, the CBN is very particular about individuals that qualify to be an agent. Therefore, commercial banks take extra caution before they can authorise anyone as an agent.
To be eligible for a POS machine or to be an agent, you must have an existing business. This business must have been in existence for at least 12 months. Asides from this, you must have a shop or place of business. Also you must have registered with the Corporate Affairs Commision as any of the following:
- Sole Proprietorship
- Limited Liability Company
- Cooperative societies
- Public Entities
2. Go to your bank of choice
The next thing is, selecting your bank of choice. After you have done this, you can approach the bank to know their requirements. Almost all banks in Nigeria accept agent banking services. In fact, you can be an agent for as many banks as you can serve.
They will give you a form to fill. This form is an agreement between you and the bank. It contains the terms and conditions of your application. Asides from this, they will request for the following documents:
- A valid means of identification. This can be your National I.d card, international passport or voters card
- 2 passport photographs
- 2 current account referees
- Evidence of your business registration
- A minimum working capital of N50,000
- Tax Identification Number
3. Get the Equipment
Once the bank considers your application, the next step is to supply you with the tools and the equipment you need for the business. This will only be possible if your application is successful.
After you must have received the POS and other essential tools you need from the bank, the next thing is to choose the location of your business. It is advisable that you consider areas where there are limited banks and fewer ATMs. Asides from this, you can consider Bus Stops, event centers, etc. If you choose an amazing location, your business will surely thrive.
The POS business is a very lucrative business. If you do all things right, your business is sure destined for success.