POS business may be a cash minting business which has silently been happening without much awareness but now gaining serious popularity. this is often thanks to increase within the number of consumers who are spreading the news to others who need a lifetime of convenience and ease.
If you’ve got ever gone to ATM post and queue under hot sun or under showers it should tell you that this business will thrive well any day any time. People now have an honest substitute to banks cash withdrawal and transfer through pos. Account opening and BVN registration.
Pos business is extremely lucrative. it’s a known incontrovertible fact that trading on money or money related venture is extremely profitable. this is often a business which will provide jobs to thousands of individuals especially the youths. that’s why this post is arising in other to encourage people to travel into this viable business.
WHAT THIS POST IS ABOUT
How to start pos business
Pos transaction business in Nigeria
How profitable is pos business
Pos transaction charges
How much is required to start out pos business
Where to urge pos machine
HOW TO START POS BUSINESS
If you’ve got been trying to find opportunity to earn money through POS otherwise you want to try to to a MOBILE ATM CASH BANKING business in Nigeria a chance has presented itself A step by step detailed guide is printed during this post. numerous small businesses are now using POS machines for his or her transactions. Example shops, supermarkets, hair dressing saloon, boutique etc.
For those that want to travel into pos business in Nigeria as their main business. Here is that the criteria:
1. GET a store
You have to urge a store this is often vital because as a business there must be an area to determine it. One good thing about Pos business is that it doesn’t require large space, alittle place is simply enough. you’ll rent it or use you house for transaction.
If you are a store owner you’ve got to extend your customers base; because it’ll put you at a plus if you’re getting your pos machine from bank.
Where you position your pos business is extremely important because increase within the number of patronizers means increase in profit. It should be an area that’s visible and accessible. Decorate your shop with banners and materials which will tend to you by your pos mobile agents. Make people know what your shop is about.
You need about #50,000 at hand for withdrawal payment and money also for miscellaneous like point of sale purchase if need be. Another thing you would like money for is shop renting.
4. ACQUIRE THE POS MACHINE
There are two ways of getting pos machine, through:
WHAT IS POS
POS (point of sale) is additionally called point of purchase (POP) it’s a tool that permits local debit cardholders make payment for goods and services mostly during a retail location. Pos machine may be a excellent automated product because it reduces the strain of carrying cash around, transacting directly with cash etc. It also gives instant notification/confirmation of products and services payment. that’s why you receive alert whenever you are doing cash withdrawal or transfer with pos agent. Pos business has its many challenges and Problems which you want to know before going into the business.
POS accepts debit/credit cards an equivalent way ATM does. Buyers of products pays on to a sellers account without using cash.
It is not only for payment only but are often customized for bill payment like airtime (recharge card printing), DSTV, GOTV,. POS also can be customized to gather School fees, rent, tax, donations etc.
CRITERIA FOR OBTAINING A POS MACHINE
Have a sales point
Possess a registered business name
A passport photograph
Get it on lease or pay
HOW TO GET POS FROM BANKS
Have a business name
Business email address
And some other small details.
You will be directed to the account officer. Who will start processing the documents within 72 hours. Under 14 days you’ll receive the POS. But you’ll be required to sign a POS agreement document with the bank.
PURCHASE POS MACHINE WITH A CBN LICENSED PTSP
In case you don’t want to gather the pos machine from bank, you’ll purchase from Companies who are licensed to sell them. they’re registered aggregator with CBN licensed PTSP (issuers of pos terminal in Nigeria. You stand to realize tons from possessing your own pos machine.
COST OF POS MACHINE
Pos machine varies in prices counting on the agency company you’re buying from and therefore the sort of point of sales machine in question. the costs of the machines are coming down from what it wont to be. We now have some machines that cost #45,000, #65,000, #75,000 etc. The difference here is simply like having 2G, 3G and 4G therefore the higher the cash , the higher the service.
THE BANKS to urge THE POS MACHINES ARE:
Diamond bank etc. Each bank has its own mode of operation you only need to attend them one on one to urge details on what’s required.
Banks give out the POS machines free. I mean you don’t need to pay anything, however, terms and conditions apply. as an example , some banks can only offer you when your customer base is from 1,000 and above. Another condition is that if you can sale your products up to at least one million Naira each day . Banks charge you certain percentage for each transaction you perform.
OTHER PLACES to urge POS MACHINE
Micro Finance bank: some microfinance banks like Fortis Mobile gives out pos machines. But you’ve got to register as agent mobile money company.
INTERSWITCH: Interswitch is instant debit and credit but it doesn’t accept visa cards for now.
There are many mobile money operators example; Quickteller, Paga, Branpos, Pocketmonie, Firstmonie, Opay, Paycentre, Nexgo Pos, citiserve etc.
COMMISSION FROM DIFFERENT AGENCIES
AGENCY BANKING SERVICES AND COMMISSION
Before now it wont to be:
Cash withdrawal – #150
Cash deposits #150
Transfers – #150
The #150 commission you create on every transaction is that the same for all banks.
It is now 1% deduction across board on every transaction, the fee is 0.75% while Maximum Charge on Pos (CAP) that wont to be #2,000 is now #1,200.
NOTE: Commission are often changed at anytime determine the present charges from your agent or bank.
FOR RECHARGE CARD PRINTING
FOR DATA BUNDLES
FOR BILL PAYMENT
Same goes to the other company used.
WHERE to determine POS BUSINESS
Rural Communities: you’ll accept as true with me that rural communities have less number of banks or financial institutions intrinsically establishing a POS business are going to be an excellent success.
Many parents that want to send money to their kids for college fees, upkeep and other commitments will gladly embrace this business.
Others who travel downtown to hold out financial transaction are going to be relief.
Places Where ATM are always crowded or in places where there are shortages of banks/ATM post. citizenry are always during a hurry intrinsically not everyone likes queuing up in ATM post if they see alternative they’re going to gladly accept not minding the fees .
I discovered that the business thrives well on the brink of markets and banks. Sometimes bank ATM will show insufficient fund at that point many of us who wants to form use of cash will rush you.
In your business premises especially if you handle an outsized amount of cash or have an honest number of clients.
HOW TO achieve POS BUSINESS
Do not collect high charges. you’ll put #300 for a ten thousand Naira transaction that’s 3% on every monetary transaction.
Always be available in the least cost in your location because if you retain absenting yourself clients will think that you simply aren’t serious.
since it involves money you’ve got to position it during a place that’s safe. in order that hoodlums won’t use you shine by robbing you.
Don’t accept great deal s for security reasons except you’re well secured because if some bad guys know that you simply handle large amount, they’ll strike.
THE DIFFERENCE BETWEEN GETTING FREE POS MACHINE and buying YOUR OWN
It is more ideal for you to shop for your own pos machine than get the free version. once they say free it’s not completely free because you’ll still spare some money to urge the pos. it’s called mpos so it’s not a machine per say but something you’ll sync into your phone.
To get free pos machine there are many conditions that follows.
You must prove that your business can do a #100,000 transaction a day . it’s mostly given to people that are already into or have done agency banking before and sleep in a high brow traffic areas.
The money you buy registration #15,000 or more is enough to feature extra money and buy for yourself. They call it agent registration and it’s compulsory.
You are the one to pay transportation fare for physical visitation of your location or the address where terminal are going to be used. And also for branding materials, courier for the pos delivery. Let’s assume the entire of those cost #20,000. Add this to the registration fee what does that tell you?
It takes 30 days before you get the free mobile pos and you’ve got to sync it into your smart phone before you’ll transact with it.
As an agent you’ll not charge extra for utility bill, airtime recharge but only from the commission you charge user
REGULAR POS (ONLY FOR PURCHASE)
It works independently without smart phone. You get instant value of amount transacted into your wallet. From your wallet you create transfer to your bank.
You get your pos machine within 3 working days after payment.
You earn extra commission on cable TV, utility bills, airtime recharge. Also you earn from the commission you charge users.
CHALLENGES OF POS BUSINESS
Power or source of sunshine . Some rural communities don’t have steady light while others don’t have it in the least .
So you’ll need to spend more on fuel to power your generator after purchasing one. In other to stay your business running and your customers smiling. The business involves the utilization of a machine and has got to be powered whenever .
Network issues: a lover of mine told me how she need to one school; about commencing transactions there was no network. She battled for a short time at the top she excused herself. And told the proprietress that she is going to be back when the network comes up. Anyway, there’s how you’ll use your phone to try to to the business so you’ll avoid embarrassment. I mean alongside with the machine
Some people say phone transfer is best than pos but big Companies with many staff needs pos. Phone transfer is risky and really frustrating. Network is that the major challenge. Some alerts take hours to return and sometimes you get a reversal of the cash a customer has already confirmed you posted.
Theft/robbery: it involves money-making, there’s the fear of possible attack because you’re exposed thereto . to stay security means pocket money .
Inability to regulate the gang that gathers around you.
How To Start Pos Business In Nigeria eni best
e and email address.
HOW PROFITABLE IS POS BUSINESS IN NIGERIA
There is good profit in POS business because it involves rendering many services. With pos you can print and sell recharge cards. Only this one alone provides heavy gain not to talk of when you calculate other services rendered in a day.
The money you make from commissions; banks and cable is enough to make you financially free. The bank charges you receive is not directly from you but your customers.
So you have nothing to lose but much to gain. But you have to charge according to bank commission or it should guide your charges.
Assuming you transacted with 40 people a day and your commission is #150 each that will give you #6,000. In a month you would have made #150,000 it could be more. Remember there are other services like recharge card sales, cable and Education voucher sales to make money from.
WHY YOU SHOULD START POS BUSINESS
As said it is lucrative. The demand for all the services is high meaning plenty overturn for you which guarantees a huge profit.
It is not a complex business, the processes involved are straightforward. Meaning the business can be done by anybody.
You would have rendered help to people who spend so much money and time to get to where they can receive such services
The demand for the service is high meaning more money
It is sustainable because the consumption of these services will always be needed
POS business is not yet crowded
HOW MUCH IS NEEDED TO START POS BUSINESS
It depends on the services you want to be rendering and the kind of pos you want to acquire. If you are getting it from bank you will need from #100,000 and above for transaction.
That is outside the shop. But if you are buying from agency company then you need #300,000. So #100,000 can take care of the POS machine while #200,000 will be for money payment for withdrawal. Remember you must have cash in your bank account for transfers.
You can start small then when the demand for your services increase you also increase the capacity of your capital.
For those who collected the machines from banks and are using it for their business transactions such as supermarkets, they have nothing to pay but meet-up with laid down procedures.
The business sales itself, create awareness or let people know your business. Next time they will be the ones coming to do business with you.
You can approach institutions, religious bodies, market etc and make a deal with them.
Print fliers and share them around your neighbourhood.
Start pos business and be making more than #5,000 daily; and more than #200,000 monthly anywhere you are. It is a nice business idea you should think of doing as an entrepreneur.
You can do it as a side hustle. With pos you don’t need any software for recharge card printing; rather you will be printing directly.
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