Introduction to POS Business in Nigeria
POS terminal business has been one of the profitable and hottest businesses in Nigeria. It has gradually taking over ATMs as it offer easy and convenience way of cash withdrawal in the country. POS (point of sale) terminal agents makes cash available to people in exchange for earning commission, profit or fee through the terminal machine.
Due to the scarcity of cash availability on Automated Teller Machines (ATMs) including everyday long queues of individual experience at ATM stands and banking hall. People now look for alternative means by withdrawing cash from POS terminal agents around which made the POS business more lucrative.
Is POS Business Profitable?
The Central Bank of Nigeria (CBN) introduced the POS system in 2013 to achieve financial inclusion and develop a cashless economy.
Data from Nairametrics for Statista shows that the number of POS payments increased significantly from 34 million in 2015 to 438.6 million in 2019. On the other hand, in 2020, NIBSS recorded that Nigerian merchants and mobile money operators (MMOs) processed over 655 million POS transactions valued at ₦4.7 trillion ($13 billion), a 50% increase from 2019.
If you are looking for a more profitable and lucrative business on a small scale with low capital, then consider POS business because a lot of people are patronizing POS terminal agent every day in order to break away from the crowd, to carry out transactions as fast as possible and also avoid stress of going to banking hall or wasting time on queue.
This is a profitable business in Nigeria right now which can be done in remote places that have no bank branches. Unlike other business which may required a lot of marketing, POS business doesn’t have to do any marketing as you are positioned public faces while customers will always find you as long as people deal with financial transactions daily.
Is It Capital Intensive? How Much Can I Make Daily?
Unlike other business that required much investment, POS business doesn’t require so much capital to start running and you can start making profit immediately. All you need is a very good location where people can get access to you easily. On average, POS terminal agent can make between N10,000 to N20,000 daily depending on location and and good relationship with customer.
Type of POS Terminal
POS terminals are used for cash withdrawals, money transfers, utility bill payments, etc. The usage process involves an agent enters information about new transaction before asking customer to enter 4 digit pin in order to finalize the transaction.
When POS terminal completes a transaction using mobile data, it immediately prints a confirmation receipt; it also prints out a ‘Transaction Declined’ receipt when unable to complete the transaction.
A cardless transaction can also be done without debit cards via direct transfers to the designated account.
There are 3 types of POS Terminal with different functions and physical features as seen below.
- Mini POS Terminal: This terminal looks like a calculator, very portable, more affordable and pocket friendly. You can move around with it anywhere without heavy load or need for bag. It comes with a function buttons and a narrow display screen. It can perform basic POS functions and required being connected to your Internet-enabled smartphone via Bluetooth. It does not have a printer. After inserting a debit card, transaction details are entered through app on a smart phone, on which the transaction is also activated. However, the user enters their four-digit PIN on the terminal.
- Traditional POS Terminal: This is the most common type as they were the first to be introduced to the Nigerian market. More function keys and a wider square display screen allow transaction entry and activation as long as it is connected to the Internet. It automatically prints out a receipt at the end of every transaction.
- Android POS Terminal: This type is designed to look and act like a 7-inch smartphone. The device can perform all traditional POS terminal functions, show notifications, allow app installation, and scan barcodes, among others. It processes transactions faster because it runs on a robust OS, can connect to WiFi, and has 4G network capability.
Starting Cost And How To Get Started
While there is no fixed amount for starting a POS business in Nigeria, setup location can be vary. Either having a shop, kiosk, of umbrella stand. The major cost required is the cash at hand to make withdrawals possible. Then getting a new POS terminal cost between N85,000 and N100,000. But at Dataway, we offer more affordable, unconditional and 30% refundable caution fee of ₦10,000 only. You can always return our POS terminal when its not serving purpose and get your money back without any damages.
Applying as a POS agent on Dataway will also give you the privileged to:
Become our official agent approved in your location.
You will be able to also sell our registration coupon code and make more profit.
You will be added to our official agent Whatsapp group for timely support and guideline.
You will be able to use our official app as an agent.
You will be listed on our contact page as a verified approved agent in your location as well.
For more details including our charges and application form click on the button below to get started. You will not gain access if you are not yet a subscriber on Dataway. Click here to register and gain access, including other benefits.