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
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:
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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.
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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.
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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.
I got value admin. Thanks for this.
85k is it only for the purchase of the POS or others. Secondly 0.25 or 1200 is it for the bank comissions
Pls i need more enlightement
How can I link my personal post bought to my bank account?
Very good article and informative.
It Depnds on several factors such as : proximity to bank, Market size, turnover rate etc.. contact me if u need further details on this
Purchasing pos at the cost of 85-100k what about the money start up the business itself
Thanks so much for, your information is helpful
Purchasing the POS machine at the cost of #85-100, does it include the money that will be needed for the business in general.
Very informative.. Thanks so much. But like how much will one need to start up the business
Kindly explain this to me,you said I have to pay a certain fee per transaction is 0.25 percent of any transaction,this 1200 is it the sum of all the transaction that I have dom for the day
Is it a most that you will have to work as an agent..
Pls my question is how much can I use to start up d POS business ?
I am planning on starting up my on POS business more information please thanks
Thanks for the information.
Thank you so much and God bless you
Thanks for this information. I want to do the POS business and partner with either First Bank or Paga. Can you give me more information that will guide me. Thanks once again
a well understandable post thank for the help
Thanks for sharing this beautiful peace of information for free.
I want to be become an agent. Must I have a current account before becoming an agent?
Pls how can i become quickteller agent and get the POS machine
what security measures can one take to secure cash at hand at the pos post or location.?
Nice talking about POS business, and now this market is going up. And we are POS equipment maker and supplier, and provide new generation POS system and solutions to the market, welcome reliable business partners to join us for distribution in Nigeria or other countries. HIntel POS system and Solutions at http://www.hintel-tech.com.
i need more info about this pls contact 07066977863
Nice post very informative, am planing on opening my own pos business and i think this post is very helpful.
what security measures can one take to secure cash at hand at the pos post or location.?
Know your customers. Try not to give out very large amount of cash to strangers for security reasons. Refer the individual to a near by bank.
Your love are OK n should not be too hidden (in the dark)…just in case you are being robbed, a passer-by might come to your aid!
Walk into any first bank office and request to see the marketing manager..Its his duty to give you all the information you need to start up the First Minute Agent Business.
#pls I’m my previous post I meant …Your location should not be too hidden! Thank you.
Want more information on this please.