Recently, POS business (Agent Banking Business) has been thriving in Nigeria as a large number of individual and businesses are now involved in it. This business involves using a Point of Sale (POS) machine to help customers carry out money transactions such as transfers, withdrawals, purchase of airtime, payment of bills and TV subscriptions.
Agent banking business was introduced by various financial institutions to help their customers carry out these transactions conveniently. In that view, customers are to pay a convenience fee when ever they make use of the service.
Another reason why this business was introduced was to create wealth; individuals and businesses who register as agents get to earn money from the convenience fee paid by customers.
If you are an individual or business firm interested in this, this article will be providing information about how to start a POS business in Nigeria.
How to start POS Business in Nigeria
Follow the below steps to start POS business in Nigeria;
Get a business location: You need to be at a place to offer agent banking services so a location is very important. Now, you should not just pick any place to set up your business, you need a strategic spot. You should try to pick a location where you can easily get customers and where financial services is a bit scare (no banks or ATMs are close by). That way people nearby will be willing to patronize you and pay the convenience fee.
Be well informed: You would be attending to different customers daily so you need to be well informed about tech and the service you are rendering. Know how to operate the POS.
Get a host: A host is simply the financial body whose services you would be offering to your customers. You can not operate without a host so you need to register with one; you can only start working as a POS business agent when you get approved by your host. There are various hosts you can apply for in Nigeria, some popular ones are;
⦁ First Bank
⦁ First City Monument Bank (FCMB)
When you apply to any of these hosts, you will be required to provide some documents for verification and your application will be approved when you pass the verification process.
Buy/Request for a POS Machine: You need a POS machine to be able to attend to your customers; money transfers, airtime recharge, bill payments and more are done using a POS. Some hosts do give out free POS machines to their agents but for others, you would be the one to purchase the machine. POS machines are quite expensive, a new one is sold for about N90,000 or more. It is better to register with a host that issues free ATMs to agents:
Advertise your business: Once you’ve been approved by your host and gotten a POS, you are ready to start operating as a POS agent. What you have to do know is to advertise your business so prospective customers will be aware of what you do. Ensure you set up a broad banner in front of your shop and you can also print and paste flyers at different points close to your shop.
It is that easy to become a POS business agent; the most important thing is getting approved by your host. As your business grow, you can open more shops at other locations and make more money.