Cynthia Ezegwu
In Nigeria, what’s sooner than going to a {bank}? Asking, “Where’s the next POS?”
POS (Point-of-Sale) brokers, these kiosks on the road corners, are the lifeblood of on a regular basis banking, particularly in areas removed from cities. They make banking accessible from as early as 6:40 a.m., offering important providers similar to money withdrawals, transfers, airtime top-ups, and invoice funds.
In 2024, Nigerians spent ₦18 trillion by way of POS terminals—69% greater than in 2023. It’s a booming trade, and the cellular POS market may hit US$42.68 billion by 2025. But is it so simple as simply getting a machine and charging ₦100 per withdrawal? Far from it.
Here’s a breakdown of how the POS enterprise actually works and the steps to make it worthwhile.
How the POS Business Works
Act as an Official Agent: You’re not simply working a tool. You’re an official agent of a {bank} or fintech like FirstMonie, OPay, or Moniepoint. Your POS terminal connects to their techniques, permitting you to course of transactions on their behalf.
The POS Terminal: You get your terminal out of your supplier. It may be leased or bought, with some agreements requiring minimal month-to-month transactions. The terminal connects to the supplier’s system by way of SIM playing cards from networks like MTN or Airtel.
Float Capital: Your “float” is your working capital, used to fund withdrawals, transfers, and pockets top-ups. Without it, you may’t function. If it runs out, it is advisable refill it instantly to proceed serving clients.
Making Money: You earn commissions for every transaction. For instance, you could cost a ₦100 charge per withdrawal, and the supplier takes a reduce. The extra clients you serve, the extra you earn—that is why location and foot site visitors are essential.
Offer More Services: Beyond withdrawals, POS brokers also can deal with DSTV/GOtv subscriptions, NEPA payments, and even Bet9ja pockets top-ups. This provides extra income streams to your enterprise.
Tracking and Settlements: Providers provide you with a dashboard to trace transactions, float, and earnings. Some supply on the spot settlements, whereas others take just a few hours to credit score your pockets.
Managing the Business: Operating a POS enterprise is extra than simply urgent buttons. It includes managing float, buyer expectations, fraud dangers, and community downtime—expertise that separate profitable brokers from those that battle.
Steps to Start a Profitable POS Business
Know What You’re Getting Into: POS enterprise isn’t a get-rich-quick enterprise. It requires money administration, customer support, and a stable location. Treat it as an actual enterprise from day one.
Choose Your Provider: Research suppliers like Moniepoint, OPay, and FirstMonie. Check their buyer assist, charges, and reliability earlier than signing up.
Get the Right POS Terminal: Whether cellular or conventional, be certain the system fits your wants. Consider elements like SIM card assist, transaction limits, and charges earlier than committing.
Secure Float Capital: Start with no less than ₦100,000 to cowl every day transactions. Monitor your float fastidiously and regulate it based mostly on peak transaction durations.
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Pick a High-Traffic Location: Your location is essential. Find locations with a number of foot site visitors, like close to bus stops or markets, to make sure constant enterprise.
Training: You (or your employees) have to know the way to deal with transactions, stop fraud, and resolve points shortly. Make certain to coach properly and keep up to date on greatest practices.
Expand Your Offerings: Beyond withdrawals, providing providers like airtime top-ups, invoice funds, and betting pockets providers can enhance your earnings.
Challenges You Might Face
Network Issues: Transactions can fail on account of poor community connectivity. Invest in a tool with multi-SIM assist to keep away from downtime.
Disputed Transactions: Always affirm transactions earlier than handing over money, and work with suppliers who can resolve disputes shortly.
Float Management: Without correct float administration, you threat operating out of money. Track busy durations and forecast your float wants.
Competition: In busy areas like Lagos, competitors is fierce. Focus on providing wonderful customer support to face out.
The Bottom Line
The POS enterprise may be extremely worthwhile if completed proper. Location, customer support, float administration, and the suitable accomplice are key to success. Treat it as a full-fledged enterprise, and the rewards may be important.
