How to Start a POS Business in Nigeria

Fazipay POS
May 23, 2023
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According to NIBSS, the number of deployed POS terminals in Nigeria today has grown from 217,283 in December 2018 to 1,665,664 in 2022. That’s over a 766% increase over five years. This statistic shows how common and lucrative the POS business has been over recent years.

Today, there is hardly a community where you will not find at least one Point-of-Sale (POS) terminal where you can complete various transactions. A POS allows customers, especially in unreached, underserved, and often remote areas where there are no banks, to transact and pay bills.

Meanwhile, not all POS users operate as independent businesses. POS terminals apply to existing businesses to collect customer payments and help manage records safely. You can learn more about the advantages of using POS for your business here.

This article provides a comprehensive guide to what you need to know when starting a POS business.

The Central Bank of Nigeria introduced agency banking in 2013 to enhance financial inclusion, a goal shared with the world bank. This commitment opened doors for the public to access many kinds of financial services, especially in unbanked or underbanked places in Nigeria. In addition, the availability of POS centers today has significantly changed the queues in banking halls and the time and energy required to complete transactions.

People do not have to travel long distances anymore to make transactions; neither is there limited access to cash when needed. Not only have POS businesses brought financial transactions closer to the public, but they have also created jobs for many Nigerians.

How To Start POS Business

A POS business can only be approved by a financial institution licensed by the CBN to manage agents. Familiar license owners are commercial banks who equally share the right to have an agency banking outlet. Examples include First Bank, Wema Bank, GTBank, Zenith, UBA, EcoBank, and Access Bank.

There are licensed fintech companies with CBN licenses to manage POS agents. They include Infibranches with the FaziPay POS, Bankly POS, OPay, Kudi bank, Moniepoint, PayCentre, and Paga. They vary in rates, features, targets, network coverage, and services.

Approval from these financial institutions means that the POS agent can help customers with cash deposits, withdrawals, transfers, and bill payments. Therefore, a vital step in starting a POS business is choosing a licensed agency to work with. Read how to become a mobile money agent to learn more about what you need to start a POS business, and read how to become a mobile money agent.

Ways To Earn Money on FaziPay

If you choose FaziPay POS for your mobile money business, you can provide several services to the community, including

Cash withdrawals at the rate of 0.49%, capped at N90
Cash deposits
Cash transfers
Bill payments, including institutions and utilities
Health insurance
Tax payments
Toll fee
Buy and pay for solar products

A POS agent can make money from each of the transactions above from customer payments. Also, there is no limit to the number of daily transactions an agent can make. So, if a POS business is located in the right place, among other factors, one can make substantial daily profits.

Overall, the introduction of POS has significantly influenced the financial inclusion agenda and a cashless economy. In addition, customers can now avoid long queues at ATM points by using the nearest POS agent and performing the same transaction that could have taken time. Moreover, ATMs do not have the mobility that a POS business could have to penetrate remote areas.

Run a POS Business for Profit

As more POS are increasingly deployed into the Nigerian space, it has also increased the potential profit for both the agents or vendors and the issuing institution. At the same time, it has served communities, increasing the population of people with financial access. The icing on the cake is the access to renewable energy that Infibranches adds.

As a result of this extra feature, POS agents who use FaziPay POS can make an additional income by selling solar products. These agents get up to a 5% commission on every solar product sold. In addition, customers can either pay at once or pay in installments with the POS agents.

Another way a POS business can amass profits is through the customers bearing the transaction cost, while the agent can also gain from the difference between the charge and the cost. As a result, a POS agent can make up to N11,000 in daily profit if he locates his business in a high-traffic area.

POS transactions have also been instrumental for businesses to collect instant payments from their customers without delay. On the other hand, existing companies or vocations can add POS service to their business as a side hustle.

Add POS for Payment collection in your business

You could explore many payment options for your business, but when it comes to instant payments, POS comes at the top. eTransfers would have also been a good option, but it comes with some risks of delay and, in some cases, fake transfers. However, POS transactions are instant for both parties.

Adding POS as a payment collection for your business may or may not require a debit card from your customer. It is a valid option, especially if you run a retail business that requires a fast checkout process with sufficient payments, say during shopping. POS or agency banking also supports the integration of fees for other services that customers need.

Earn up to 5% commission on Solar Sales

A unique advantage of choosing FaziPay POS is that you get to make extra income from solar sales. FaziPay is not only committed to enabling financial access but also committed to renewable energy access to underserved and unserved communities in Nigeria.

Therefore, when registered agents penetrate these communities and provide opportunities for customers to transact, they can equally buy and pay for solar products. The payment options include

Outright payment
Buy-now-pay-later
Payment in installments (PayGo)

You can register and self-board as a new POS agent on the FaziPay platform. Download the FaziPay app from Google Playstore and register to begin. After completing the onboarding process, you will pay N10,000 for managing the terminal. Then you can transact at the best rates.