Getting a job is currently like a “mission impossible” achievement in the country,so you have to look for a way to start something on your own. There are many businesses, but the major challenge is capital. Well, let’s move on with why we are here. You might have been seeing posters of POS Business around your location and you wish to start one but don’t know how to go about. Then, this article is for you.
POS business (Point-of-Sale) can be otherwise known as agent banking business. It involves the transfer of funds, withdrawal of funds, sale of recharge cards and bill payments like GoTv, DStv, StarTimes, and PHCN Bill services.
This business is an extension of services offered by financial institutions like banks through which customers get convenience. Therefore the fee you charge customers for these services is called convenience fee.
The central bank of Nigeria in a bit for financial inclusion has thrown opens this opportunity. An avenue to create wealth.
The truth is, if you are in a location where no banks, or ATM point, this business will thrive because people will always be in need of money and won’t hesitate to pay the additional minimal charges on top.
What Are The Benefit Of POS Business In Nigeria?
- Achieve financial inclusion
- Reduce the cost to serve
- More Account acquisition
- Business Opportunity
- Create Jobs for the unemployed
- Decongest bank branches
- Serve a wider range of customers
- Make customers happy
Why is POS Business Profitable in Nigeria?
It is profitable because you as the agent will make money from the extra fee charged on every transfer, withdrawal, bill payments and lots more. You must have readily available cash to give out because customers will come more for withdrawals than fund transfers.
How to start a POS business Profitably in Nigeria
We will be using First Money by First Bank of Nigeria as Sample for the set up.
Setting Up POS Business In Nigeria
You can start POS business in Nigeria by getting a HOST. A host is a financial institution through which you extend their services to your customers. Good hosts include;
- First Bank
Location: Your location is very strategic to your success in this business. A location where they are limited or no ATMs or Financial institutions like Banks will do. Apart from that, they should be enough room to contain your customers, a furniture divider between you and your customers. Create a place where customers will feel free to carry out transactions.
Get a POS Machine: To get one in Nigeria is absolutely free of charge, provided you get yours from one of the reputable commercial banks in the country.
In case you’re wondering what the bank stands to gain from giving you the machine for free, get this clearly: the issuing bank makes money on the long term by charging a fixed commission (between 0.25% and 1.5%, depending on the bank) per transaction done through each POS terminal issued.
To get a POS machine from any bank, all you need is to have an account with the bank.
Note: To become a First Money Agent with First bank please check this link here
Set Up Banners: For your business to be known and the people within that vicinity to be aware that you create such services, you should get a banner with the inscription boldly written “POS Withdral and Fund Transfer”.
|Proposed Fees and Commission Structure for Firstmonie Agent Transactions|
|Transaction Amount Band||Fee paid by Customer||Commission to the Agent
(% of Fee)
|1||Deposit (own FirstBank A/C)|
|2||Transfer to FirstBank|
|3||Transfer to Other Banks|
|6||Airtime Recharge||Free||2% of Amount|