Can I Start A POS Business With 50K In Nigeria? (FULL GUIDE)

The POS business is one of the most lucrative businesses to do in Nigeria today.

The business can be started with as little as 50,000 naira.

If you are looking for a business to start but doesn’t have huge capital, POS business will be of great option.

What is a POS business?

A POS business, also known as a point-of-sale business, is a business that provides financial services to customers at a convenient location.

POS agents offer a variety of services, including cash withdrawals, deposits, transfers, and bill payments.

Why is the POS business lucrative in Nigeria?

There are several reasons why the the POS business is considered a better option in Nigeria.

First, there is a large unbanked population in Nigeria. World Bank confirms that only 45.3% of adult Nigerians have a bank account.

However, this indicates that there is a large demand for financial services from people who do not have access to banks.

Second, the POS business is convenient for customers. POS agents are often located in convenient locations, such as markets, bus stops, and residential areas. This makes it easy for customers to access financial services without having to travel to a bank.

Third, the POS business is profitable. Agents earn a commission on every transaction they make.

However, The commission rate varies depending on the service, but it is typically around 1-2%. This means that POS agents can cash out  a good profit if they process a large number of transactions daily.

How to start a POS business with 50,000 naira

To start a POS business with 50,000 naira, you will need to:

1. Get a POS machine. POS machines can be purchased from a variety of POS vendors. The price of a POS machine varies depending on the brand, features and your location. However, you can get a basic POS machine for around 20,000 – 30,000 naira.

2. Open a merchant account with a bank. Another way is to open a merchant account. This is a type of bank account that allows businesses to accept electronic payments. You can open a merchant account with any bank in Nigeria. However, some banks offer special benefits for POS agents, such as lower commission rates and free POS machines.

3. Get a SIM card and data plan. You will need a SIM card and data plan to connect your POS machine to the internet.You can get a SIM card and data plan from any mobile network operator in Nigeria.

4. Find a good business location. Your POS business location should be in a convenient place where there is a lot of foot traffic. Some good locations for POS businesses include markets, bus stops, and residential areas.

How To Become successful in POS business

• Be honest and trustworthy. Your Customers should be able to trust you with their money. Make sure to always give customers the correct amount of money and to process their transactions quickly and efficiently.

• Be friendly and customer-oriented. Provide good customer service and make sure that your customers have a positive experience.

• Offer competitive prices. Charge reasonable commission rates and fees.

• Promote your business. Let people in your community know that you are running a POS business. You can do this by putting up signs and flyers, or by advertising on local radio and television stations.

Conclusion

The POS business is a great business opportunity for people who are looking to start a business with a small capital. It is a lucrative business that is easy to start and operate.