All You Need to Start a POS Business in 4 Simple Steps As CBN Cash Withdrawal Policy Kicks Off
- With the CBN cash withdrawal policy set to full kick off more Nigerians will have to rely heavily on electronic transaction
- While there has been an upsurge of PoS operators in Nigeria, the market is still open to anyone
- To have a slice of the growing market, here are four simple steps to start a POS business
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From Monday, January 9, 2023, the Central Bank of Nigeria will implement its cash withdrawal policy.
In a recent defense of the policy to lawmakers, CBN Governor Godwin Emefiele stated that Point of Sale (PoS) agents will be vital.
He told lawmakers that every local government in Nigeria has an agent represented and there are more than 900,000 POS terminals.
Explaining further Emefiele revealed that across the country there are 1.4 million agents nationwide.
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Why POS business now
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.
The aforementioned numbers present a huge market coupled with CBN drive for a cashless economy
How to Become a POS Agent
To be part of the POS business is a simple procedure that may be finished in two weeks to a month if you fulfill the host bank's standards.
To start a business could range from N80-100,000, including money to get the POS machine.
A strategic location is one with a large number of individuals who will need to make basic financial transactions.
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 withdrawals, payments, bank transfers, 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 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 between 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.
However, whichever bank you decide to approach, it is to your advantage that you own an active account with them.
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.
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.
Banks beg Nigerians to avoid a last-minute rush to deposit old notes
Meanwhile, in another report, Nigerian banks have sent out messages to customers as the deadline for returning old naira notes gets closer.
Ecobank went even further, increasing the amount of interest a customer will get on their savings.
EcoBank for example noted that measures are in place in all branches to ensure seamless, easy, and stress-free cash deposits by customers.