POS Business in Nigeria: How to start in 2019


POS business which is also known as agent banking business is a lucrative business that you can start in Nigeria.

Basically, the business involves the transfer of funds, withdrawal of funds, sale of recharge cards and bill payments like GoTv, DSTV, Startimes, and PHCN bill services.

POS Business in Nigeria: How to start in 2019

POS Business in Nigeria: How to start in 2019

The POS business extends the services offered by financial institutions like banks to customers by making the service more convenient. Therefore the fee you charge customers for this service is called convenience fee.

In general, POS business thrives in areas where they are limited or no banks or ATMs. People will always be in need of money for various needs and will be glad to go to where they can be quickly served at a minimal cost.

Some of the benefits of POS business in Nigeria include:

  • Bank decongestion
  • Business opportunities for individuals and businesses
  • Cost reduction for banks
  • Extension of banking services to a wider range of customers
  • Financial inclusion
  • Increased account acquisition for the banks
  • Job creation

The POS business involves much liquidity which means that you must have available cash to give out because customers will come more for withdrawals than fund transfers. The services offered include withdrawals, fund transfers, bill payments and sale of recharge cards or top up to all networks without buying vouchers.

Step 1: Find a host

The first step to launching your POS business is to get a host. A host is a financial institution that is the source of the services you extend to your customers. Examples of good hosts include First Bank, Quickteller, Paga, FCMB, etc.

We have provided necessary information on two of the most popular hosts below:

  • Paga

Paga is a payment system that can be used to transfer funds through your phones. You can send money to any location in Nigeria and receive money from different countries (through Western Union, MoneyGlobe and other popular payment systems) using the Paga platform. The platform has agents all over the country and there is still room for more. If you’re interested in becoming a Paga agent, you just need to follow these steps.

#1. Visit the only official website offered by Paga company

#2. The site has a lot of useful information on the home page. You can check reviews and understand how the platform works and what’s in it for you. Once you are ready to proceed with your own account registration, click on the ‘Get Started’ button.

#3. You can also click on the FAQ link at the bottom of the website. You will see two sections for customers while the other section is for agents. The agent section provides the necessary information on how to become a Paga agent. You can also email your request directly to this email address: agents@mypaga.com. You shouldn’t include your full name and contact details in your email-letter so that the Paga team can reach you easily.

#4. Once you have sent the email, you will be a response from one of the local Paga representatives in your city or area. The representative will provide you with the necessary instructions on how exactly you can turn into an agent.

As a Paga agent, you’re expected to work with the clients and your tasks include registration of new clients, helping users complete financial transactions of your clients (if they want you to), helping users to load cash into their account as well as withdrawing cash.

You will earn money by offering this company’s services in their local communities in Nigeria. You receive a number of benefits. These include a commission for each transaction performed by your client, participate in the training organized by Paga and enjoy traffic to your businessthanks to your cooperation with Paga.

  • Firstmonie

As a Firstmonie Agent, you are known as the FirstBank ‘Human ATM’ and your job is to reduce the reliance on over-the counter transactions while providing convenient personalized services. Your services include– Account Opening, Cash Deposit, Airtime Purchase, Bills Payment, Withdrawals and Money Transfer.

When you become a Firstmonie Agent in your community, you’re able to make extra income from your thriving business.

  • Quickteller

Quickteller is another excellent POS business platform. As an agent, you can earn attractive commissions for all Quickteller services which is an additional line of income. And as long as you are a citizen of Nigeria with a legitimate business, you can become a Quickteller agent. Agents include individuals, small to mid-size businesses, institutions, etc.

Step 2: Get a location

The location of your POS business is very important to your success. For instance, a location where they are limited or no ATMs or bank is an excellent one. In addition, your outlet or shop should have enough room to comfortably facilitate your transaction with your customers.

Step 3: Acquire a POS machine

Most of your customers will come to make withdrawals, so you will need to have a POS machine. The cost of a new POS machine is between N85,000 and N100,000 only. Some banks like First Bank offers free POS machines but you need to meet their requirements.

You must have an account with the host bank. Most of these banks require you to maintain a current account while you are okay with a savings account for others. Contact your bank’s customer support or account officer

You will also need to collect the POS document from your account officer or the nearest branch of the bank. Some banks allow you to download the document online. Then fill in the required details, append the necessary signatures and submit with your bank.

Typically, it takes several days or a couple of days to get the device delivered to you. Generally, POS terminals and support are free but you will have to pay a certain fee per transaction (typically, 0.25% with a cap or N1200).

Step 4: Advertise your business

You should print banners and display them at your business location in order to attract customers. You don’t have to spend so much on your adverts. Designing and printing your banners shouldn’t cost more than N5000.

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