In respect to the recent situation in Nigeria, the POS business is an alternative for people who want to have multiple streams of income and work very flexibly. Almost everywhere now in areas in Nigeria have at least one POS business store on the streets and this has proven to be a very lucrative business if you know your onions well. In this article, you'll be reading about the POS business and all that you need to run one.
POS is known as an acronym that means Point Of Sale. The business is characterized by dispensing cash to people after withdrawing from their bank accounts using their debit cards. This business wasn't very known until the introduction of the lockdown across the world where most businesses were closed down temporarily and permanently. POS agents are retailers and are not the originator of the services.
One of the fast and booming businesses in Nigeria currently is the POS business and it came into the limelight because the banks were also closed during the lockdown, so individuals had a limited time to get funds for daily survival and needs. To curb the problems, POS business was introduced at a subsidized rate for the people and a much affordable price per 1000 naira.
Some of the things that POS businesses can take care of are:
-Withdrawal of money from different bank accounts in Nigeria
-Making deposits into any bank account
-Paying of bills such as Electricity bill, DSTV/GoTv subscription, airtime, water bills, etc
-Some POS businesses can open bank accounts using the Point of sale
-Application for Bank Verification Number (BVN).
POS business is one of the great advantages and can be a lucrative one if well understood and engaged by the individual.
Are you interested in owning a POS business in Nigeria? Here is all that you need to take note of;
First Step: Having a business at hand
This may look very distracting to the new idea of the POS business but it is advisable to have something you do before and all that POS is to do, is complement it. The business thrives with finance and one must be very careful while approaching it. The existing business must have qualifications that meet up to the standard, so there is a thorough search before you can be authorized as a POS agent even after applying to be one.
The eligibility of owning a POS business in Nigeria is that your existing business is in constant operation for at least 12 months (A year). It must also be registered with the Corporate Affairs Commission (CAC) either as a Limited Liability Company, Public entity, Cooperative Society, or Partnership amidst others. All this qualifies you as a prospective POS business owner.
Second Step: Approach a bank
You can approach any bank that allows the agent banking services and then ensure that you meet up with their requirements. There is a guide from the CBN that guides all of these aspects. You will be expected to fill in documents of agreement and here are some of the requirements in the bank.
-Have an account at the bank
-Have a valid form of identification for example- Drivers license, National ID card, Voters' card, etc.
-Have a Bank Verification Number, BVN
-Have a Tax identification number
-Have a CAC certificate.
-A minimum of starting capital of 50,000 naira.
Third Step: Get your POS equipment
If you're considered to have successfully passed the second stage, the bank would supply the tools needed for the business. The pieces of equipment are major:
-The POS Terminal: It is the main device used in the payment and use of the Point of sale. It is the tool that ensures the transaction using debit cards.
-Bar code scanner for the payment of the utility bills.
-Personal Identification Number.
-Sometimes a card reader.
Fourth Step: Choosing location and rendering service
For the POS business to thrive well, location is an important matter and it is advisable to pick a location with fewer ATMs and places that have a lot of people interaction every day like the markets, school, and so on.
Ensure that you promote your business by telling people what you do and that they should try your business. POS agents must be very careful and extra vigilant of the surroundings to prevent any situation of robbery.
You must take note of every opportunity as it could be a break way through success. Ensure that you are not shy about it and render appropriate services to every customer.
Now to the big question...
How do POS agents make profits?
A lot of Nigerians wonder why and how people who are committed to the POS business make their sales profits. Here are 2 main ways in which they do;
Service charges: In the process of rending services to the people, the POS agent charges a certain amount of money added on the bills and they can in turn make a profit through that.
Commission based: The banks that the agent registered pay their agents depending on the rate of the transactions the agent has done.
Remember that this business is a two-way thing, you will be able to have another source of income and you're serving the people in your little way. Owning a POS business is a way to expand your own former business and ensure they offer value to every customer.
Are you interested in becoming a POS agent by owning a POS business? Here are a few POS machines that have been tested to work well.
-Opay POS machine
-Moniepoint POS machine.
-Baxi box POS machine
-Kudi POS machine
-First monie POS machine.
Running a POS business is one of the easy things to do in the current situation in Nigeria because we all need money. If you're looking out for something you can do that would bring in extra money with little or no stress and help you make more money you should try out the POS business with these tips, you can never go wrong.
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