Whether it’s in the ancient city of Benin or Nigeria’s commercial capital, Lagos, Point-of-sale (POS) business is gradually becoming one of the most lucrative or profitable business ventures any entrepreneur can thrive in Nigeria.
Although some sceptics express doubts on the business profitability after the Central Bank of Nigeria (CBN) released guidelines in 2013, eight years after, the business seems to be booming due to huge adoption which includes anyone who has a bank account and needs to perform any transactions or pay utility bills.
How to Become a POS Agent
The process of starting a POS business is easy and can be completed within two weeks to a month, provided you meet the requirements of the host bank.
To start a business like this, experts say the amount of money will range from N80-100,000 including money to get the POS machine. This will also cover expenses in getting other logistics needed to start the business.
This is one of the most important things you must have thought about when deciding to run this business. A strategic location is a place where there are a good number of people who will need to perform simple financial activities. Remote areas, student environments, markets, and places where banks and automated teller machines (ATM) points are far from the people can be a perfect location to begin the business.
Get a Shop or Kiosk
This will serve as the local or nearest financial institution to the people where they can perform simple transactions like withdrawal, payment, bank transfer, etc. Your shop or kiosk should be designed in such a manner that it notifies people you’re running a POS business. You can achieve this with a small board put in front of your shop to alert customers from a far distance who are looking for a POS terminal.
Get the POS Machine
This is also one of the most important tasks of the business. According to experts, there are two ways of getting a POS machine, through commercial banks and or other finance agents.
The cost of acquiring the POS machine varies from issuing agents and how strong or advanced the connection runs. To get a POS machine from a bank, there are some requirements that ought to be met in accordance with the CBN directives. However, whichever bank you decide to approach, it is to your advantage that you own an active account with them.
According to the CBN, the requirements for starting a POS business include a valid means of identification, for example, a national ID card, voters card, active driver’s license or an international passport. A registered business name is also needed as well as a POS location, passport photographs, account number, phone number, business email address, and bank verification number (BVN).
Some of the designated banks assigned to issue POS machines include First Bank, United Bank for Africa, Guaranty Trust Bank, Diamond Access Bank, Zenith Bank, Wema Bank, Keystone Bank, Fidelity Bank, Union Bank among others.
Owners of accounts in any of the listed banks, have an advantage said Nimota Aselu, a POS business operator. One can get the machine at a very low cost and the banks also accept instalment payment if the potential business operators cannot pay at once.
However, there are alternative options to get the POS machines from which include microfinance banks, and mobile operators like Interswitch, Quickteller, Paga, FirstMonie, Opay, etc. In the case of the latter, the business operators get to work as agents while the mobile operators act as hosts.
Other major requirements include passport photographs, Bank Verification Number (BVN), Current Account references, and evidence of business registration (CAC Certificate)
Once your application is approved, you will receive the POS machine and you may begin offering your services to customers.