This post will teach you not only how to launch a point-of-sale (POS) company in Nigeria but also how to diversify your enterprise and increase profitability. This post will also teach you which Nigerian banks you may open a point-of-sale (POS) business with, as well as how much capital is required to get started.
Read the article through to the conclusion to learn more about all of this. Due to the enormous revenues it generates on a daily basis, point of sale (POS) businesses are among the most well-liked enterprises in Nigeria today. I have witnessed numerous individuals in this industry earn between #30,000 and #50,000 every day simply by positioning yourself correctly and engaging in additional business ventures like as selling recharge cards, soft drinks, pure water, and other items.
POS: What is it?
A portable device called POS, or point of sale in the banking industry, accepts credit or debit cards from any bank in the network to process payments for goods and services at merchant locations. If you’ve spent a lot of time in supermarkets or shopping centres, you probably already know that the machine’s primary function was to process payments for goods and services.
Not many people are unaware of the additional functions or services that the Point of Sale device offers. They are aware that there were numerous restrictions on the machine back then, most notably those imposed by the Central Bank of Nigeria (CBN). The average Nigerian no longer has to frequently visit the bank in order to conduct transactions because the machine is capable of doing a lot of things these days.
You can make deposits, withdrawals, airtime purchases, Nepa bill payments, GoTV or DSTV subscription payments, internet subscription purchases, and more today. However, cash withdrawals are the most frequent POS transactions.
Is POS Business Lucrative?
Maybe the most significant query that everyone is hoping to have answered right now is this one. Well, on average, depending on your region and a few other factors, providing POS services alone can bring in between #15,000 and #50,000 per day.
Imagine now that you operate additional businesses in Nigeria in addition to your point-of-sale system, such as a business selling phone chargers or accessories. Aim for a daily income of between #50,000 and #100,000. In light of this, I would argue that operating a business in Nigeria is a wise decision from all angles.
Depending on the type of service you provide and the volume of work you do, a POS agent may make #100 or more. For instance, POS agents in my neighbourhood in Nigeria charge #100 for each $5,000 in withdrawals or deposits. Consider a scenario where you handled 50 clients seeking the same type of transaction in a single day. You will benefit by #5,000 from that.
Start-Up Costs for POS Businesses
The bank you wish to use to launch your business will determine how much capital you need to launch a point-of-sale (POS) in Nigeria. Whether the bank is a commercial bank or a microfinance bank affects the fees associated with this type of business in Nigeria. You can launch a point-of-sale (POS) business in Nigeria with any bank, including fintechs.
In Nigeria, it is rare to find a bank where you cannot open a business. In Nigeria, a minimum of #400,000 in capital is required to launch a point-of-sale (POS) firm. To begin with, this money will be transferred into your merchant account.
How to Launch a POS Business in Nigeria
This is a detailed how-to guide for launching a point-of-sale (POS) business in Nigeria right now.
1. Obtain the Necessary Funds
The process of launching a pos business in Nigeria begins with this. As previously noted, starting a point-of-sale business in Nigeria requires funds. The least amount that you should have in your account is this. But other banks, particularly microfinance banks, let you purchase a point-of-sale system for less money.
Whatever the amount of capital required, you must obtain it. As we often state on this blog, taking out loans to launch enterprises is not advised. Thus, never give in to pressure. Give it some time. If funds are tight, you can always launch a low-cap firm first and launch your post-business later, once you’ve amassed sufficient revenue.
2. Get the Device
The second step in launching a pos company in Nigeria is this. Purchasing your pos machine will be the next step after obtaining your capital. Pos machines are distributed by commercial and microfinance banks, so you can get yours from any bank of your choosing.
Every commercial bank, including microfinance banks, has its own point-of-sale equipment. All you have to do is search for the one that best fits your pos business. You should take your time and weigh your options because I have heard a lot of horror stories from clients regarding their banks.
What are the advantages of conducting business with the top bank in Nigeria for point-of-sale transactions? In Nigeria, there is a procedure for getting a pos machine from any bank. It may be necessary for you to create a new account or link your existing one to the pos terminal. Depending on the banks’ requirements, yes.
3. Acquire Knowledge about Its Usage
Although the POS machine is an easy gadget to use, learning how to use it is necessary before you can conduct transactions with it, just as with any other electronic device. Making blunders when making deposits or withdrawals will give the impression that you are inexperienced with the business.
You can begin learning how to use the POS system by processing transactions for your loved ones. It lowers the danger if you make mistakes in the transactions because they are very familiar with you. You can accomplish a lot of things with the POS machine, as I have explained.
To begin with, though, you should become familiar with deposits and withdrawals as this is the main reason Nigerians use POS centres.
4. Select the Ideal Location
It is crucial that you pick the ideal site for your point-of-sale business in Nigeria, unless you plan to launch it from home. Renting a store is not always necessary, especially if this is the only business you wish to operate.
It has been repeatedly demonstrated that many clients will transact with you when you are at a bus stop, T-junction, or roundabout where thousands of people pass by each day. If you pitch your tent in a busy market, for instance, and a thousand commuters pass by every day, at least a hundred of them will come buy from you. 100 commuters times $100 per fare equals a healthy profit.
5. Make your first deposit and withdrawal.
The best thing about operating a point-of-sale (pos) business in Nigeria is that it’s mobile; the only drawback is that you have to carry cash with you everywhere. This indicates that you can launch your pos company from any location in Nigeria. It’s not necessary to lease a store or secure a location before launching your business; just get going.
Making accounts for your transactions is also crucial. All of the charges and transactions you have completed must be documented. Customers rarely experience problems with the pos machine, which is the nicest thing about the pos industry in Nigeria. Their banks are primarily to blame if there is a problem.
You shouldn’t write down their credit card information because of this. I’ll say it again: don’t write down your customers’ credit card information. This will make you appear untrustworthy.
6. POS Business Profits
You can engage a man or woman to handle the transactions for you in Nigeria and pay them between $20,000 and $30,000 a month in salary if you want to build a successful point-of-sale business. This allows you to quickly open more branches, which will increase your revenue.
Remaining open for business is another approach to increase your revenues from your pos business in Nigeria. From my own observation, pos operators that stay open later and on Sundays tend to earn more money than those who close early or don’t operate on Sundays.
Finally, launching a second business in addition to your Nigerian pos enterprise might help you boost earnings. You can launch a phone accessory or phone charging business in addition, as I mentioned before.
In summary
In Nigeria, point-of-sale (POS) businesses can be highly profitable due to the high volume of transactions and occasional network issues in banks. Nigerians will do business with you because they are sick of all of these, especially the young ones. I think you will have a prosperous pos business in Nigeria if you adhere to all I have said here.
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