A POS (point-of-sale) business is a type of business in which an individual or company acts as an agent for a bank or other financial institution, providing customers with the ability to make transactions using a Machine terminal. These transactions can include things like cash withdrawals, money transfers, and airtime purchases.
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Setting up a POS business in Nigeria is relatively easy and can be completed within a period of 2 weeks to a month, depending on the service provider.
Register with a local bank or an online banking platform:
To become an agent, you must first register with a local bank or an online banking platform. To do this, you will need to meet certain requirements, which may include:
- Having an active bank account with the bank of your choice that has been operational for at least six months,
- Completing an agent registration form.
Providing a valid means of identification.
- Having a bank verification number (BVN), and providing a utility bill to verify your location.
- You will also need to have an existing business.
Once you have met all the requirements, you will need to download the mobile agent app on your phone and fill in your details. Some banks may also require you to deposit an amount of money in your agent account.
After completing the registration process on the app, you will need to perform a minimum of 25 transactions (withdrawal, transfer, and airtime purchase) with the account before you can apply for a POS machine and become an agent. The machine will be delivered to you within 1-2 weeks after your application. As an agent, you will get a commission for every transaction you carry out.
You can also register as a point-of-sale agent with an online issuing agency. The steps for registration on these platforms are similar to that of the bank registration process, but everything is done online. Additionally, the percentage charged for each transaction is lower than that of the bank, which means you stand to gain more profit. Some online platforms for agent registration include Opay, Bankly, Fidelity, Monie Point, Firstmonie, Kudi, Payforce, Paga, Quickteller Paypoint, Baxi, and Palmpay.
The key points of this article are:
- Setting up a POS business in Nigeria is easy and can be completed within 2 weeks to a month.
- The first step in setting is becoming a registered agent.
- You must have an active bank account, a valid means of identification, a BVN, a utility bill to verify your location, and an existing business.
- To register with a local bank, you must complete an Agent registration form and meet the bank’s requirements.
- To register with an online platform, you can complete the process online and the percentage charged for each transaction is lower than with a bank.
- Some online platforms for POS agent registration include Opay POS, Bankly, Fidelity POS, Monie Point POS, Firstmonie POS, Kudi POS, Payforce, Paga, Quickteller Paypoint, Baxi POS and Palmpay POS.
FIND A GOOD LOCATION
When starting a POS (point of sale) business, it is important to carefully consider the location in which you plan to set up shop. The level of development in the area, proximity to other businesses, access to banking services, and the level of crime in the area are all important factors that can impact the success of your business.
One of the best locations for a POS business is in rural areas with minimal development and limited access to banking services. Setting up in an area where there are very few bank establishments will give your business a competitive advantage as members of the community will rely heavily on your services. Additionally, this can also allow you to charge more for your services than those in urban areas where people have easy access to banks and ATMs. Setting up in underdeveloped areas also means less competition compared to a highly populated area.
Another good location for a POS business is in areas with high human traffic such as street junctions and market areas. The higher the amount of human traffic, the greater the potential for your business. You can also set up in student areas, as this demographic is likely to have a high demand for your services. Additionally, setting up in areas full of other businesses that may attract customers can also be a good choice as it can increase foot traffic to your business.
Key points of this article are:
- When setting up a POS business, consider the level of development of the location, proximity to other businesses, closeness to banks and ATMs, the level of accessibility to your desired network, and also the level of crime in the area.
- One of the best locations for a POS business is in rural areas with minimum development and even lesser access to banking services.
- Setting up in an area where there are very few Bank establishments will be a great boost for your business because members of the community will depend heavily on your services.
- Setting up in underdeveloped areas also means less competition compared to a highly populated area.
- Good locations for a POS business include areas with high human traffic like street junctions and market areas, student areas, and areas full of other businesses that might also attract customers.
GET START-UP CAPITAL
When setting up a POS (point of sale) business, capital is a crucial aspect that must be taken into consideration. It is possible to set up a POS business with as little as N70,000 (Naira). This amount is said to be sufficient to cover the cost of purchasing a POS terminal. The POS terminal is a crucial piece of equipment as it is used to perform various financial transactions such as money transfers and withdrawals.
However, it is important to note that once you have your POS terminal, you will still need additional cash to perform money transfers and withdrawals. This means that you will need a little amount of cash in your agent account and physical cash on hand to pay for withdrawals.
Some good sources of start-up capital for your POS business. These includes: friends and relatives, personal savings, and loans from banks and other financial institutions. It’s important to remember that the amount of capital you need will depend on the specific business model you choose, the location, and other factors. It’s crucial to have a clear business plan and a budget before starting your business.
- Capital is important for setting up a POS business.
- It is possible to set up with as little as N70,000.
- This amount covers the purchase of a POS terminal.
- Once you have your terminal, you will need additional cash in your agent account for money transfers and physical cash for withdrawals.
- Good sources of start-up capital include friends and relatives, personal savings, and loans from banks and other financial institutions.
GET A SHOP OR A KIOSK
When setting up a POS (point of sale) business, the location of your shop or kiosk is an important aspect to consider. The shop or kiosk is the base of your business, thus it is crucial to choose a suitable location. You have the option to rent a shop or make a kiosk where you will perform your services. It’s important that your shop should have a sign to alert customers to the availability of your services.
Another option to consider is to merge with an existing business and set up a small office in a corner of the shop. This is a cost-effective option as it allows you to share the cost of rent and other expenses with an existing business. Additionally, it also provides you with ready customers from those who are already patronizing the shop. This can be a great way to get your business off the ground and build a customer base quickly.
It’s important to note that, regardless of which option you choose, it’s crucial to choose a location that is easily accessible and has a good amount of foot traffic. Additionally, having a clear business plan and budget in place is a must for any POS business.
- Your shop is an important aspect of your POS business.
- You can rent a shop or make a kiosk for your services.
- Your shop should have a sign to alert customers to the availability of your services.
- You can merge with an existing business and set up a small office in a corner of the shop.
- This is a cost-effective option and provides ready customers from those who are already patronizing the shop.
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