How To Start POS Business Successfully In Nigeria
POS can have different meanings depending on the context but we will defined the financial context and the business of POS in Nigeria:
Meaning of POS
Point of Sale: In retail and business, POS refers to the point at which a customer makes a payment for goods or services. It can also refer to the hardware and software used to process transactions, such as a cash register or credit card terminal.
POS Terminal Names Used in Nigeria and how Much they charge for transactions.
– Opay: With over 563,000 agents, Opay has the largest POS agent network in Nigeria.
– Moniepoint: Offers competitive POS charges, with 0.5% on withdrawals of ₦20,000 and below, and a flat rate of ₦100 for transactions above ₦20,000.
– First Bank (FirstMonie): Charges ₦50 for transactions below ₦5,000, ₦100 for transactions between ₦5,001 and ₦30,000, and ₦150 for transactions between ₦30,001 and ₦100,000.
– Access Bank (Access Closa Agent): Charges ₦100 for transactions between ₦1 and ₦5,000, ₦200 for transactions between ₦5,001 and ₦10,000, and ₦400 for transactions between ₦15,001 and ₦20,000.
– Bankly: Charges 0.3% on withdrawals and ₦35 on transfers
– Paycenter: Charges ₦10.5-₦26.25 for transactions of ₦50,000 and below, and ₦50 for transactions above ₦50,000
– ErrandPay: Offers competitive POS charges and a streamlined onboarding process.
– Kuda: Offers a POS service with competitive charges.
– Payforce: Offers a POS service with a 10% cashback commission on every withdrawal .
– GTBank Naira MasterCard POS: A popular option that offers both offline and online transaction processing, compatible with Mastercard and Visa cards.
– Paystack POS: Known for its easy setup and affordable pricing, compatible with all major payment methods, including bank transfers and mobile wallets.
– Paga POS: A mobile and desktop POS solution that accepts all major cards and payment apps, offering easy refunds and chargebacks.
– Moneris POS: A Canadian-based payment processing company that offers a POS terminal solution for Nigerian businesses, with support for credit/debit cards and mobile payments.
– Interswitch: A well-established provider of digital payment services in Nigeria, offering a range of POS terminals with various features, including support for local and international cards.
– Flutterwave: A popular payment service provider in Nigeria that offers a POS terminal solution with features like fast payment processing, multicurrency support, and tax computation assistance.
– Empower: A user-friendly POS terminal solution that offers features like easy transaction processing, real-time reporting, and fraud prevention tools.
STARTING POS BUSINESS IN NIGERIA
Starting a POS (Point of Sale) business in Nigeria can be a profitable venture, especially in areas with limited access to banking services. Here’s a step-by-step guide to help you get started:
Research and Planning:
1. Understand the market: Research the demand for POS services in your area and identify your target audience.
2. Choose a location: Select a location with high foot traffic, such as markets, shopping centers, or busy streets.
3. Develop a business plan: Outline your business goals, target market, marketing strategies, financial projections, and operational plan.
Registration and Licensing:
1. Register your business: Register your business with the Corporate Affairs Commission (CAC) and obtain a Business Name Registration Certificate.
2. Obtain necessary licenses: Obtain licenses from relevant authorities, such as the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC).
Partnership with a Bank or Financial Institution
1. Choose a bank or financial institution: Partner with a reputable bank or financial institution that offers POS services.
2. Apply for a POS terminal: Apply for a POS terminal from your chosen bank or financial institution.
3. Understand the terms and conditions: Understand the terms and conditions of the POS service, including transaction fees, commission rates, and settlement periods.
Equipment and Supplies
1. POS terminal: Purchase or lease a POS terminal from your chosen bank or financial institution.
2. Printer and paper: Purchase a printer and paper for printing receipts.
3. Internet connectivity: Ensure you have a stable internet connection for online transactions.
Training and Support
1. Training: Receive training from your chosen bank or financial institution on how to operate the POS terminal and manage transactions.
2. Support: Ensure you have access to technical support and customer service from your chosen bank or financial institution.
Launch and Promotion
1. Launch your business: Launch your POS business and start offering services to customers.
2. Promote your business: Promote your business through social media, flyers, and word-of-mouth marketing.
Ongoing Operations
1. Manage transactions: Manage transactions, including cash withdrawals, deposits, and transfers.
2. Reconcile accounts: Reconcile your accounts regularly to ensure accuracy and detect any discrepancies.
3. Maintain equipment: Maintain your POS terminal and other equipment to ensure they are functioning properly.
By following these steps, you can start a successful POS business in Nigeria and provide valuable financial services to your community.
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