What does POS mean?

POS (Point of Sale) is a center or point where you make payment for goods and services. A point-of-sale transaction is done online or in person, and get an electronic receipt.

 

POS business is becoming popular in Nigeria, and many young Nigerians have invested in it. It is easier to set up since you need is a small kiosk with a stool or table and a chair in a front house. Due to non-employment, many young school leavers began the business with little to no capital.

 

Market Overview

There is a large market size for the POS business in Nigeria as nearly everyone prefers to withdraw their money from the POS kiosk or stand rather than going to use the ATM or automated teller machine, especially in some cases where the ATM location is not available or a little far from them.

 

This article will be of help to you if you are planning to set up a POS business that will be profitable in Nigeria. Follow the steps in this article to guide you on how to make profits in the business. 

 

How do you start a POS Business in Nigeria?

Firstly, you need to choose a busy location where the passersby will demand for POS services. Your location must not be closer to the bank as most people prefer to use the bank ATM for their transactions. 

 

Profitability Factors

Choose a location around commercial areas such as markets, bus stops, and event centers. The number of transactions completed in a day will determine your daily profits, hence reason you need a large foot traffic area as your location.

 

Choose a POS Service Provider

Choose a good POS service provider. There are many POS service or machine providers in Nigeria, such as First Bank, GTB, Access Bank, Wema Bank, and other Fintech companies like Palmpay, Opay, Moniepoint, and Paga. 

 

Cost Analysis

The cost of a POS terminal varies from bank to bank and other Fintech companies. The POS terminal costs between #25,000 and #35,000.00. Some people get it on lease, while some are free.

 

Revenue Potential

The POS operator profits from every cash withdrawal or deposit transaction by customers. You can sell airtime, internet Data, utility bill payments, and cable television subscriptions.

 

Be consistent

Punctuality is the soul of business. Be punctual and ensure you are accessible and consistent.

 

Have Connectivity backup for your device.

Due to the epileptic electricity supply you will need a connectivity backup for your POS terminal since it will work from morning till evening. 

 

Challenges and Risks

The challenges and risks faced in the POS business in Nigeria is electricity power supply. Get your POS terminal and other devices powered always. Having a large amount of cash in your bag for a transaction stands a risk of being attacked by hoodlums or getting robbed. 

 

The stress you will go through before you meet the regulatory requirements to start your POS business.

 

Success Stories

Lots of people have succeeded in the business, hence reason most graduates or school leavers are willing to go into the business. 

 

Give complementary and incentives to customers. 

Be kind to your customers. Create an excellent interpersonal relationship with them and increase patronage to boost your profit.

 

Conclusion

POS business is a lucrative business anyone can do in Nigeria as long as you are dedicated, ambitious, cautious, and business-oriented person. The POS business in Nigeria has made aspiring entrepreneurs successful.