The POS business began in 2013 after the Central Bank of Nigeria released its guideline on the operations and management of the business. Since then, it has remained one of the retail channels of several commercial banks to make their banking services reach a large number of people.

POS business is a legitimate way to make money in Nigeria. However, it’s more profitable in communities with no banks and places where ATMs are not enough to serve the community’s financial needs.

POS (Point of Sale) business offers services like funds transfer and withdrawal, airtime sales, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills. It is used in several places where goods and services are sold/rendered; places like retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, etc.

It is also called agent banking business, and it’s an extension of the services offered by financial institutions to enable easy service offering to a wide range of customers.

By creating easy access for financial transactions in different localities, the POS business has given individuals and business owners additional income.

How POS Agents Make Money
1. Commission; Banks pay agents commission based on the volume of transactions carried out on their behalf.
2. Service Charges; By rendering service to customers, you can also charge them a particular amount especially on bills payments, taxes, and subscriptions.
3. Float; Depending on your cash management policy, you can also make use of cash deposits, net of withdrawal for your primary business.

How To Start POS Business In Nigeria
Step 1: Register a Business with the CAC
Financial services are a sensitive area of life to deal with and this is why the Central Bank of Nigeria has taken several precautions to ensure the integrity of those who will qualify to be agents. One of such requirements is that you must have a registered existing business of any type with the Corporate Affairs Commission and have a shop or office from which you operate.
Registering your business with the Corporate Affairs Commission is quick and affordable and the lawyers at www.paulokwuobilegalpractice.business.site can get the process completed for you within 2-3days regardless of your location.

Step 2: Approach A Bank
Virtually all Nigerian banks allow agent banking services. As soon as you decide on the bank of your choice, the next thing is to approach the bank and get details of their requirement. The CBN guide allows being an agent for as many banks as you can serve.
You will need to fill some documents/agreement forms on the transaction conditions. Then, the bank reviews the application in line with CBN, internal criteria and agrees with you if you meet all requirements.

Some of the required documents include;
Valid means of identification e.g Driver’s license, National ID card, International passport or voter’s card.
BVN
2 passport photographs
2 current account references
Evidence of business registration (CAC Certificate)
Tax Identification Number (TIN)
Memorandum and Article of Association.
Credit Bureau Report
A minimum working capital of N50,000

Step 3: Get The Equipment
Once your application is considered, the bank then supplies the needed tools and equipment for the business. The following materials are usually provided by the bank:
Point of Sale Terminal; a portable device that facilitates payments of goods and services at bank agent locations using payment cards.
Card reader
Barcode scanner to scan bills for bill payment transactions
Personal identification number (PIN) etc.

Step 4: Location
To thrive in the business, it’s advisable to choose a location with limited banks or places with few ATMs. Also, choose strategic locations such as bus stops, public markets, event centers, etc. All of these factors will affect your daily profit.
Once you have a good location with enough spaces for swift movement for you and the customers, have a banner displayed at the entrance to show the retail banking services you offer.
As soon as you have these, the next step is to start providing the following services;
• Cash deposit and withdrawal
• Balance inquiry
• Funds transfer services (local money value transfer)
• Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
• Generation and issuance of mini statement
• Cash disbursement and cash repayment of loans
• Agent mobile payments/banking services.

By operating this business, you are not only increasing your stream of income, but you are also serving the needs of the people in your community.

What Does It Cost To Start A POS Business?
We did the cost analysis of everything you need to start the POS business. To get the complete researched guide with the costs of starting the business, call us on 09066946712 or e.mail business@pclawconsults.com.

Following

I will think of this.