How to Successfully Start a POS Business in Nigeria

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HOW TO START A POS BUSINESS IN NIGERIA?

To start a POS business, there are some key factors that need to be put in place. These factors are what will determine the longevity of the business.

FACTORS TO CONSIDER BEFORE STARTING THE BUSINESS.

Location: This is one of the most important factors to be considered when starting a POS business. Most people don’t know that the location of the business is one of the things that will determine how far you will go in the business and also will determine your profit.

Before starting, a location survey has to be done, you can’t just get a shop anywhere or erect your kiosk, you need to be in a busy environment, like a market, busy road, or a T junction street that is always busy with people going and coming and also where houses are and most importantly far from the bank or where there are not too many financial institutions (banks).

Type of terminal (POS machine): Choosing a terminal is another important factor that cannot be overlooked. We have so many mobile money agent terminals, so it can be kind of confusing when choosing a terminal so you must do your research very well so as not to go out of business or go into debt.

Terminals can be grouped into two commercial bank terminal and a Fintech terminal. Examples of commercial bank terminals are the ones issued by banks to different mobile money agents and Fintech terminals are the ones purchase or given out on lease to an interested agent but you need to pay while commercial bank terminals are free and also charge less in transactions. Example of fintech terminal (Baxi Box, Paycentre, Moniepoint, Kashzoo, Kudi, QuickTeller, Opay, AjoCard, Itex and much more) Review will be done on each of the listed terminals.

Below are the things you need to look out for when choosing a POS terminal.

  • Network
  • Charges
  • How fast they resolve dispense error
  • Commission
  •  Social media account (to see how they respond to their agent)

Capital: Without capital, you can’t start the business, Capital is the root of the business and also determine how much you will make from the business. At least for a starter, you need nothing less than 60,000 cash at hand after getting a location and renting or building a kiosk before you can comfortably start. So as to reduce the stress of going to the bank to collect cash.

How much do you need to Start a POS Business?

To comfortable start a pos business you need close to 150 thousand to 200 thousand naira if you are using a kiosk but if you are renting a shop then you will need more, cause shop fee, agreement and commission especially for those who reside in Lagos state

POS Charges and Commission

NamesKudiBaxi boxPaycentreOpayMoniepoint
Withdrawal Charges0.6/150 Flat0.550.50/90 Flat0.5/100 Flat0.5/100 Flat
Network Rating80%90%78%85%90%
Transfer Charges4530201010
CommissionYesYesNoYesNo
Customer Care Service 70%85%70%50%79%

if you interested in starting POS business and you don’t know how to go about it or the type of terminal to start with, then you are on the right page? I will be educating you on how to run a successful POS business with just 70 thousand Naira start up capital including the terminal you are going to use.

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