To start a POS business in Nigeria in 2023, you will need to have a little capital to set up the business and register with a financial institution or financial technology company such as Opay or Palmpay. You will provide different services such as deposits, withdrawals, and airtime purchases, and in exchange for these services, customers will pay you a fee.
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Additionally, you will get a commission from your POS service provider which makes it a very lucrative business. It is important to note that keeping a reasonable amount of cash at hand is essential for the success of the business.
What are the Things you need to start(Key points):
• It is a highly lucrative business and easy to set up.
• The business requires little capital to set up and can make an average of five to ten thousand naira daily in profit.
• It is not very difficult to understand and can be merged with other trades or run alone.
• As a registered agent, you are under a financial institution like a bank or financial technology company like Opay, Palmpay, etc.
For every transaction you carry out for customers, you are to charge them.
• You also get an additional commission from your POS service provider which makes it lucrative.
IS POS BUSINESS PROFITABLE IN NIGERIA?
The Point of Sale (POS) business in Nigeria is a profitable venture. The number of POS terminals in the country has been consistently growing from 2017 to 2023, indicating a high demand for the service.
However, the profitability depend on various factors such as location and competition. For example, if a POS business is set up close to banks or ATMs that have little foot traffic or in an area with many established POS centers, it may not yield much profit due to low turnout of customers.
To increase the chances of profitability, it’s recommended to conduct a feasibility study and explore the proposed location. This would involve understanding the number of banks and ATMs in the area, as well as the ease of depositing and withdrawing money in that location. Additionally, it’s important to consider the competition in the area and how to differentiate your business to attract more customers.
One of the advantages of Point of sale business is its convenience. They are often open on weekends when banks are closed, which makes them a lifesaver for customers who need to withdraw money on those days. Furthermore, the transactions are quick and easy, which can save customers time and money on transportation. These factors ensure that the business keeps growing, making it a profitable venture.
The business is profitable in Nigeria, but profitability depends on proper planning and execution. Conducting a feasibility study, exploring the proposed location, understanding the competition and offering convenience to customers, are all important factors to consider when starting a POS business in Nigeria.
- Profitability depends on factors such as location and competition.
- Carrying out a feasibility study and exploring the proposed location can help increase chances of profitability
- Setting up close to banks or ATMs that have little foot traffic or in an area with many established POS centers may not yield much profit
- It can be profitable due to the convenience they offer, such as being open on weekends when banks are closed and providing quick and easy transactions, which can save customers time and money.
- The business is profitable in Nigeria but profitability depends on proper planning and execution.
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