As with any other booming business opportunities in Nigeria, a lot of people have been flooding into the point-of-sale business. Now, for people who are not probably Nigerians, the POS business is about helping people withdraw money at a charge.
The idea is this, normally people who shop at supermarkets, filling stations and everywhere else can pay with their ATM cards directly to the POS machine.
These POS vendors help people withdraw and charge them for the services.
How Much Do POS Vendors Make?
The amount of money you can make as a POS dealer depends on your location.
Take for instance, in Uyo I was charged ₦200 for withdrawing ₦10,000. The price is the same for Ihiala, Umuahia, Owerri and some other parts of Nigeria I\’ve been to.
However, I was charged ₦100 for withdrawing the same ₦10,000 in Enugu and people in rural areas say it\’s the same charge for them.
There\’s no exact amount of money you can say POS dealers make. If you stay in a high traffic area with less competition, say a market, junction or even close to a bank, you can be turning in a better amount of money.
How Much Will It Take To Start A POS Business?
Opening a POS spot is not very expensive, the bulk of cash you need is the one at hand for withdrawals.
If you have an established business already, you can attach it or you can set up a POS stand or umbrella.
The machine itself will not cost more than ₦100,000.
Rundown on the costs to set up a POS machine:-
This is a basic rundown, the prices might differ from what you see here.
- POS Machine – ₦100,000
- Stand or canopy – ₦20,000
- Capital – ₦150,000
Total = ₦270,000
What Do You Need To Launch A POS Business?
Launching a POS business is not so complicated and the steps differ with the banks and financial services you\’ll be going for.
You will be needing a registered business for most of the services.
Guarantee Trust Bank
- Provide identification documents
- Visit the bank branch
- Fill GT Bank application form and submit
- It will be reviewed in 2-4 weeks and they\’ll get back to you
- Register to become a FirstMonie agent
- Provide identification documents
- You will need to have an existing business
United Bank for Africa
- You\’ll need to have an existing business to get the UBA POS machine
- Please visit the UBA official website for the complete steps.
- You\’ll need to have owned a Zenith account for at least 6 months
- Own an existing business
- Provide means of identification, you can run it with both a personal and current account
- Download the Zenith Bank agent form from this page or visit the bank.
First City Monument Bank
- Have an existing account with FCMB and BVN
- Own an existing business location
- Must be able to read and write
You can visit any FCMB branch for more information.
- Provide valid means of identification
- Minimum working capital of ₦150,000
- Maintain a savings or current account with Union Bank
- Provide relevant business information
- Complete the agent agreement form and submit it to firstname.lastname@example.org or visit any of their branches
The OPay POS machines cost ₦50,000 for OPay Smart POS, ₦35,000 for OPay Traditional POS, and ₦8,500 for OPay Mini POS.
You\’ll also be charged based on the volume of transactions you run with your machine.
- Sign up for the Opay app
- Upgrade KYC to Level 3
- Switch your profile to merchant
You can request for the POS machine after the processes.
Advantages of Running A POS Business
Some of the reasons a lot of people are running into the POS business include:-
If you stay in a good location, you can be making up to ₦10,000 a day in profit from the business.
Easy to start up
The banks and other institutions have made it very easy and you can start with even less than ₦200,000 capital.
Disadvantages of Running A POS Business
Some of the disadvantages of running a POS business in Nigeria include:-
There are a lot of network issues and some of the customers will rather put the blame on you than go to their banks.
You are handling a lot of cash and can be easily targeted by robbers.
The business is booming and you can see as many as five POS dealers in a single location. This will increase competition.
The POS business is a very lucrative one to do in Nigeria but your profit depends a lot on your location.
You can always switch locations if you\’re not getting customers as much as you want and don\’t forget that your safety is depending almost totally on you.