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Everything You Need to Start a POS Business in 4 Simple Steps As the Number of Bank Accounts Hit 191.4m

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There have been a surge in the number of POS operators in Nigeria, with more Nigerians opening bank accounts and fewer physical branches.
To have a slice in the growing market, here are four simple steps to start a POS business

Everything You Need to Start a POS Business in 4 Simple Steps As the Number of Bank Accounts Hit 191.4m

Point of sale (POS) business is progressively becoming one of the most successful businesses and more Nigerians are turning to it amidst the rising rate of unemployment and a growing number of bank accounts.

According to Nigeria Inter-Bank Settlement System Plc (NIBSS) there are 49.8 million current accounts, 120.4 million savings accounts, 8.9 million corporate accounts and 179.2 million individual accounts, totalled at 191.4 million bank accounts in the country, out of which 133.5 million accounts are active.

The aforementioned number presents a vast market with only about 23 commercial banks approved by the Central Bank of Nigeria.

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Data On Nigeria’s Pos Boom

The drive by the CBN to make Nigeria a cashless economy has played a significant impact in deepening the use of POS for daily transactions.
According to NIBSS, in 2021, there are 12.7 million registered POS, 8.4 million deployed and an average daily transaction of 2.6 million, valued at N6.4 trillion

How To Become A Pos Agent

The procedure for starting a POS business can last from two weeks to a month if you fulfill the host bank’s standards. You will need:

Startup Capital

You will need N80-100,000 to start, including money to get the POS machine.

Strategic Location

A strategic location is one with a large number of individuals who will need to make basic financial transactions. Places like remote communities, student environments, marketplaces, and areas with few banks and automated teller machines (ATM) points are great to start this type of business.

Shop Or Kiosk

You will need an attention-grabbing shop where you can attend to your customers in. Usually, a small board is placed in front of the shop to announce the business that is run there.

The Pos Machine

This is like the most important item for the business. According to experts, there are two ways of getting a POS machine, through commercial banks or other finance agents. To get a POS machine from a bank, some requirements ought to be met in accordance with the CBN directives. Bear in mind that the cost varies from issuing agents and how strong or advanced the connection runs.

Banks Also Involved In The Pos Wave

First Bank, United Bank for Africa, Guaranty Trust Bank, Diamond Access Bank, Zenith Bank, Wema Bank, Keystone Bank, Fidelity Bank, Union Bank, and others are among the recognised institutions allocated to supply POS devices.

According to Nimota Aselu, account holders at any of these banks have an edge as a POS business operator. Also, the machine may be obtained at a cheaper price, with a bank offer for payment in installments.
A POS machine can also be obtained in microfinance banks and mobile carriers like Interswitch, Opay, Quickteller, FirstMonie, Paga, and others.

Requirements to obtain a POS machine

According to the CBN, an active driver’s license, or an international passport, is required for starting a POS business.
A registered business name, POS location, phone number, passport pictures, business email address, account number, and bank verification number are also required.
Other requirements are references to current accounts and proof of business registration (CAC Certificate).
After your application is approved, you will receive the POS equipments and be able to begin delivering your services to consumers.

Ecobank Leads As 10 Commercial Banks Spend Over N400bn On Staff Salaries
Many Nigerian graduates believe there is so much money to be made in the banking sector.
The report showed how ten commercial banks paid workers salaries and wages of over N400 billion in 2021, aside other staff costs and pension contribution, which are otherwise known as personnel cost.

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