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

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

  • With more Nigerians opening bank accounts and fewer physical branches, there has been an army of PoS operators in Nigeria
  • As at the end of December 2021, there are 191.4 million bank accounts in Nigeria, out of which
  • To have a slice in the growing market, here are four simple steps to start a POS business

Point-of-sale (POS) business is gradually becoming one of the most lucrative or profitable businesses and more Nigerians are turning to it amid rising unemployment and a growing number of bank accounts.

According to Nigeria Inter-Bank Settlement System Plc (NIBSS) there are 191.4 million bank accounts in the country, out of which 133.5 million accounts are active as at December 2021.

The breakdown of bank accounts NIBSS said is 49.8 million current accounts, 120.4 million savings accounts, 8.9 million corporate accounts and 179.2 million individual accounts.

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How to start a POS business in Nigeria
PoS business is a booming thanks to the rise in the number of bank accounts Credit: Osarieme Eweka
Source: UGC

The aforementioned number presents a huge market giving there are just 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

Starting a POS business is a simple procedure that may be finished in two weeks to a month if you fulfill the host bank's standards.

Startup Capital:

To start a business could range from N80-100,000, 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.

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Remote communities, student environments, marketplaces, and areas with few banks and automated teller machines (ATM) points might be ideal sites to start a company.

Get a Shop or Kiosk

This will function as the people's local or nearest financial institution, where they may do simple operations such as withdrawal, payment, bank transfer, and so on.

Your shop or kiosk should be constructed in such a way that it alerts visitors that you run a POS business.

You may do this by placing a small board in front of your business to warn consumers who are seeking for a POS terminal from a distance.

Get the POS Machine

This is also one of the most important tasks of the business. According to experts, there are two ways of getting a POS machine, through commercial banks and or other finance agents, BusinessDay reports.

The cost of acquiring the POS machine varies from issuing agents and how strong or advanced the connection runs. To get a POS machine from a bank, some requirements ought to be met in accordance with the CBN directives.

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However, whichever bank you decide to approach, it is to your advantage that you own an active account with them.

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 recognized institutions allocated to supply POS devices.

Account-holders at any of the listed banks have an edge, according to Nimota Aselu, a POS company operator. The machine may be obtained at a very cheap cost, and banks offer instalment payments if potential company operators cannot pay all at once.

However, there are other places to obtain POS machines, such as microfinance banks and mobile carriers like Interswitch, Quickteller, Paga, FirstMonie, Opay, and others.

Requirements to obtain a POS machine

An active driver's license, or an international passport, is required for launching a POS firm, according to the CBN.

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A registered business name, POS location, passport pictures, account number, phone number, business email address, and bank verification number are also required (BVN).

Other important needs are passport photos, a Bank Verification Number (BVN), references to current accounts, and proof of business registration (CAC Certificate)

You will receive the POS equipment after your application is accepted, and you will be able to begin delivering your services to consumers.

Ecobank leads as 10 commercial banks spend over N400bn on staff salaries

Meanwhile, Legit.ng had earlier reported that working in the banking industry is a dream for many Nigerian graduates because they believe there is a lot of money to be made

The report showed how ten commercial banks paid workers salaries and wages of over N400 billion in 2021.

The amount captured in the report only covers salaries and wages and does not include other staff costs, or pension contribution that makes up personnel cost.

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Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.