So immediately I came back to Nigeria few months ago, I invested in the POS business. So far I haven’t suffered any losses personally but it hasn’t been great either.

Let me try to a paint vivid picture of the situation. Imagine investing 1m in a business and getting 1 - 5k as revenue (not profit). Let’s say on a good day your operator makes a transaction up to the tune of 1m and you make 10k in revenue and on a bad day she makes nothing or say 1k, so let’s say that she is making an average of 5k daily (let’s roughly estimate 4k benefit daily), now let’s say you’re not paying her by commission, you’re paying by salary of 20k per month, rent of 6k/mnth, miscellaneous 10k/mnth, mind you that your volume (capital / money) is exposed to risk daily, infact you stand the risk of losing all your cash everyday (take note of that). Now 4k times 5week days + Saturday ( Sunday is a different bargain), therefore 4*6 (4) =96 - 20 - 6 - 10 =60. So you make 60k every month from each POS business. I’m sure some unfamiliar people in this business are wondering how I got my estimates, ok before I share a particular company’s revenue format, let me remind you of the risks of this business.

I have met a couple of other investors and they shared stories of how their attendants run off with their cash and when they go to pick up their sureties, they are either no way to be found or simply uninterested and unable/incapable of repaying the money, when the matter gets to the police, a lot of money is spent and almost nothing is achieved.

I have also heard stories of people giving counterfeit money to unsuspecting POS agents. In addition to that there are tales of magic monies, that disappear and/or swallow other monies once they are place together with them, these “magic money” are paid to unsuspecting POS agents by customers running deposit transactions.

There are abundant cases of complicated transactions (mostly caused by network issues) or fraudulent transactions (proceeds from scam or transfers from stolen/hacked accounts etc) that led to fights, heavy damages, loses, death and court cases.

The chief of them all is the cases of robberies, kidnapping and deaths recorded of POS agents, especially ones that operate in remote, rough or isolated areas.

**edited
(I removed the revenue format for sensitive reasons)

With all the risk factors mentioned above and possibly others associated with this venture, and the projected revenue analysis, do you think it’s worth it?

Well, my personal opinion is that it may or may not worth it depending on your business location and traction on the aspect of revenue, as for risk I believe every business has its risk but some are avoidable and ultimately one must commit everything to God’s hand. You can share your experience or opinions below.

Aa long as we are all underbanked PoS will be relevant.
Until it gets to saturation point we will be in need

It is risky

If I have 1m capital I will invest in street food like frying akara, yam and fish and chicken with a little addition of fried beef rather than POS business.
Presently I am into Rmb exchange and its a good business but capital intensive once I settle down I will go into street food vending business. Abuja must hear

EkehPraise:
If I have 1m capital I will invest in street food like frying akara, yam and fish and chicken with a little addition of fried beef rather than POS business.
Presently I am into Rmb exchange and its a good business but capital intensive once I settle down I will go into street food vending business. Abuja must hear

What is your reason?

artimisfowler:

What is your reason?

POS is a good business but anything that involves you being in possession of a lot of cash endangers your life by 80% not just in the country but the world at a whole

EkehPraise:

POS is a good business but anything that involves you being in possession of a lot of cash endangers your life by 80% not just in the country but the world at a whole

I guess you’re right

EkehPraise:
If I have 1m capital I will invest in street food like frying akara, yam and fish and chicken with a little addition of fried beef rather than POS business.
Presently I am into Rmb exchange and its a good business but capital intensive once I settle down I will go into street food vending business. Abuja must hear

Hello.
Could you please enlighten me about RMB exchange?