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In Nigeria, How Do You Start A POS Business And Become An Agent?

In Nigeria, one of the hottest business to start for the ordinary Nigerian is a point-of-sale (POS) firm. Because of the simplicity and convenience, it gives users, it is gradually displacing ATMs.

Through a POS machine, a POS firm or mobile money agent makes cash available to individuals in return for a commission or charge.

Due to the paucity of Automated Teller Machines (ATMs) and the long lines that customers encounter at ATMs. In Nigeria, you can now find someone running a POS company almost anywhere.

In this article, we’ll look at the POS industry in Nigeria in depth. Its frequent drawbacks and problems, the cost of beginning a POS business in Nigeria, and how successful and lucrative it may be are all factors to consider.Business

And whether it’s something you should look into, as well as the POS machines and Agent networks available.

Related Article: What Does it Take to be a Successful Entrepreneur?

What is the point-of-sale (POS) industry in Nigeria?

A POS (point of sale) machine was designed to allow companies, merchants, and retailers to accept payment for goods and services without using currency.

Since then, banks and fintech (financial technology firms) in Nigeria have been using POS devices, also known as terminals, to enhance financial inclusion by delivering financial services to Nigeria’s unbanked and underbanked people.

So, for the most part, you don’t need to go to a bank to do most financial activities. These transactions can be completed at a POS center.

People who previously did not have access to banks or financial services may now do so as long as a POS firm is nearby. Especially for those living in distant and rural areas. This is why the POS industry is growing in popularity in emerging and undeveloped countries.

People that start a point-of-sale (POS) company in Nigeria are known as POS agents. When POS agents carry out any approved financial transactions on behalf of consumers/customers, they are paid commissions.

In Nigeria, a POS business isn’t simply for making payments and transfers. You may use it to recharge your phone, pay for DSTV and GOTV, and even pay your taxes.

In Nigeria, a POS agent business or a Mobile Money Agent can provide the following services to clients in the area of their business.

  • Create a new bank account
  • Money can be deposited and withdrawn from any bank.
  • Make bill payments, such as for energy, cable television, airtime, and taxes.
  • Enroll in the BVN program (Bank Verification Number)

Is it profitable to run a POS business in Nigeria?

Starting a POS firm may be successful and rewarding on average. Especially if you already own and operate another business with a physical presence. Because it lowers the amount of money required to establish this firm.

This is because an increasing number of individuals are visiting POS centers on a daily basis to conduct their financial transactions and avoid the stress that banks may bring.

In Nigeria, the POS industry is especially successful since many rural areas lack bank branches, thus POS agents have taken on the role of de facto banks. A POS agent or firm also doesn’t need to promote because they’re in the public view, and customers will always seek them out for the convenience they give.

POS agents have now established themselves as a viable alternative to visiting the bank, particularly for cash withdrawals and transfers.

Starting a POS business in Nigeria does not require a large amount of capital, and you can start generating money the day you open your doors. Just make sure you’re at a great place.

A POS agent in Nigeria can earn between N7,000 and N10,000 per day, depending on their location and how well they’ve developed confidence with their clients, particularly those in their immediate vicinity.Business

In Nigeria, how can you earn money from a POS business? You profit from the commission you receive from each customer who uses your POS equipment. Let’s say a consumer requests a withdrawal of N5,000.

Related Article: To Be a Billionaire, You Must Retrain Your Mind to Develop These Success Tips

You’ll charge N100 for the transaction and tell your POS provider about it. You can take N60 as a commission, while the company’s bank would take N40.

In Nigeria, how much does it cost to establish a POS business?

In Nigeria, there is no set fee for launching a POS firm. Whether you acquire a site (store) or not might affect the cost of launching a POS firm. Then there’s the question of whether you’re receiving a free POS machine or not.

The cash on hand you’ll need to make withdrawals is the most important cost of beginning a POS business in Nigeria. This can be anything from $250,000 and $150,000.

Some banks and fintech businesses in Nigeria charge between N85,000 and N100,000 for a new POS machine/terminal. However, some companies may provide you a free POS machine if you satisfy their conditions.

What is the price of a POS Machine in Nigeria / What is the price of a POS Machine in Nigeria?

In Nigeria, the cost of a POS system varies depending on the bank or firm you wish to be an agent for or purchase from. In Nigeria, there is no set pricing for POS terminals.

Prices range from N45,000 to N65,000 to N75,000, and can go up to N200,000 depending on the POS machine’s features.

Varied varieties of POS terminals have different specifications, such as 2G, 3G, and 4G, as well as other features.

Nigerian Point-of-Sale Fees

Here is a list of firms and banks where you may work as a POS agent in Nigeria, along with their POS fees. Please keep in mind that these fees may differ from what you see at your preferred mobile money agent service.

POS CHARGES FOR BAXI BOXES

  • WITHDRAWALS ARE CHARGED AT 0.65% FLAT.
  • NO STAMP DUTIES ON N30 FLAT FOR TRANSFER

Payforce POS Charges

  • Deposit: N25
  • Withdrawals: (0- ₦5000) = N30, (₦5,001- ₦16,500) = 0.6%, (₦16,501- ₦100,000) = N110, (₦100,001 and above) = 0.11%

Kudi POS Charges

  • Withdrawal: (below ₦4500) = ₦25, (₦4,501- ₦25k): = 0.6%, (Above ₦25k) = ₦150
  • Transfer: ₦45

Paycentre POS Charges 

  • Withdrawals: (0 to ₦10,000) = 0.55%, (N10,001 to ₦15,000) = N65, (₦15,001 to ₦20,000) = ₦75, (₦20,000 Above) = ₦80.
  • For transfers: (0 – ₦5,000) = ₦10.5, (₦5,001-₦50,000) = ₦26.25 , (₦50,000 and above)=₦50.00

Moniepoint POS Charges

  • Withdrawal: 0.5% (₦1000 – ₦19900), 100 Naira Flat for (₦20K – ₦1,000, 000)
  • Deposit: ₦12 Naira

Kashzoo POS Charges

  • Withdrawals: ₦1,000 to ₦5,000 are charged at ₦30, ₦5,001 to ₦10,000 are charged at ₦45, ₦10,001 to ₦20,000 are charged at ₦76, ₦20,001 to ₦40,000 are charged at ₦85, ₦40,001 to ₦100,000 are charged at ₦110, ₦100,001 to ₦200,000 are charged at ₦150

Kolomoni POS Charges

  • 0.5% for withdrawal from ₦1000 – ₦19900,
  • ₦30 for Deposits 100 Naira flat from 2000 Naira and above.

Where Can I Get a Point-of-Sale Machine?

In Nigeria, POS machines are exclusively available from banks and other financial organizations. GTBank is one of the most well-known banks and financial institutions in Nigeria where you may obtain a POS machine.

First Bank, Access Bank, UBA, Zenith Bank, OPAy, Baxi, Monie Point, Kudi, and Bankly are some of the most well-known banks in the country.Business

Which POS Agent in Nigeria is the best?

If you want to work as a POS Agent in Nigeria, the following are some of the finest organizations to look into in terms of cost and commission rates:

  • OPay POS
  • Bankly
  • Monie Point POS
  • Firstmonie POS
  • Kudi POS
  • GTB POS
  • Pay force
  • Paga
  • Zenith Bank mobile money agent
  • Access Bank CLOSA agent
  • Quickteller Paypoint
  • Ecobank Xpress point
  • Baxi Box
  • UBA POS

The procedures to becoming a mobile money agent or starting a POS business in Nigeria are outlined below.

  • Calculate the cost of launching a POS company.

In Nigeria, the cost of launching a POS firm varies from person to person. Because of the many areas where people dwell. In Abuja, the cost of renting a store or location to start this business will be more than in Suleja, Niger State.

You’ll also need to decide which bank or firm you’ll join in order to work as a POS representative. Do they provide free POS machines, or do you have to pay for them?Is there any cost associated with their requirements?

You must also examine the layout of your shop. Do you require the use of a safe? How are you going to keep the store safe? These are some of the factors to consider when calculating the cost of starting a business.

  • Locate a location.

Because this will be a physical business with a lot of foot traffic, it’s critical to find one that’s right for you. A heavily populated area will be an ideal site. It should be an area where a large number of people dwell and where banks and ATMs are not easily accessible.

  • Raise Your Investment Capital.

You know how much you need to start since you calculated the cost of beginning the firm. All you need to do now is raise the necessary funds, and you’ll be well on your way to being a POS agent.

  • Fill out your application to work as a POS Agent.

Depending on the bank or financial institution, being a POS agent or obtaining a POS machine may be purchased outright, leased, or even provided for free. Based on their criteria, commissions, and fees, decide which one is best for you.

You may apply for a POS machine online or in person at a bank or business. However, the entire procedure might take anything from two weeks to a month to complete.

The Advantages and Disadvantages of POS in Nigeria

The following are the advantages of a POS business in Nigeria for both the business owner and the customers:

  • It may be an additional source of revenue for small business owners.
  • People can save time and money by not having to go to the bank to perform cash transactions.
  • Encourages the country’s financial inclusion.
  • People don’t have to carry as much cash around, which makes them less vulnerable to theft. a. to armed robbery
  • Merchant revenues increase because they can serve both cash and card-carrying consumers.

The following are some of the drawbacks and problems of having a POS firm in Nigeria:

  • Robbery attempts are common.

Because to the nature of the company (cash transactions), it may attract thieves and criminals. Because you can’t afford to pay a security guard for this company. You’ll need to exercise extreme prudence and caution when it comes to moving and holding money.

  • Banking Networks can be a problem in this line of employment.

As a result, it’s critical that any POS agent service you choose has dependable network services. Some people use up to three separate POS devices to fight this.

  • Because of the country’s unpredictable power supply.

It’s critical to have your POS equipment charged at all times. It would not be a terrible idea to invest in a modest generator.

  • Lack of regulation in Agency banking.

Due to the lucrative nature of the POS sector, many individuals are flocking to it, and the industry is devoid of regulation. Some POS stores are quite near to one another in some areas.

The spacing of the stores is not governed by any rules. Furthermore, because there is no set fee for POS agents, fees may vary from one agent to the next.

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