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Nairaland Forum / Nairaland / General / Business / Starting A Profitable POS Business In Nigeria That Generates Above #200,000 (4705 Views)
Naira Scarcity: Nigerians Can Now Report POS Operators Charging Above 200 – CBN / How To Start A Profitable POS Business Starting With #100k Or Less Guaranted! / Is POS Business Profitable? (2) (3) (4)
Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by Lilmusbibabanla(m): 12:02am On Sep 07, 2019 |
pos business in Nigeria The central bank of Nigeria has given license to mobile money operating companies and commercial banks to operate what is best regard as agency banking service.That is a kind of service whereby an SMes(small and medium enterprises) which comprises of commoners are given the privilege to operate albeit on a small scale, pos business benefits virtually every banking activities to people who for one reason or the other cannot go into the commercial banking hall to perform certain transactions .This is no doubt have some benefits to both the service provider and the customers. Among the benefit the pos business customers derive is the ability to perform their transaction quickly and efficiently without having to join the usual long ques in the commercial banks. Pos business in Nigeria pos cash withdrawal business in Nigeria Among other benefits the pos business customers derive from the operation is the availability of local banks in every nook and crannies of the towns and cities.Among the benefit is also the ability to perform the banking transactions outside the known banking hours which eliminates the discomfort people usually faced in the past because of the time restriction. The CBN also mandated it that the pos business operators must not set their pos business service charge above #2,500 for their highest transaction which makes the service charge affordable. The pos business service charge is thus between the range of #100- #2500. Now how an individual can benefits from the pos business and what are the procedures to start a profitable pos business in Nigeria Pos business in Nigeria has many potentials for every individuals looking to start profitable small scale business that guarantees high return on investment and consistent passive income. In this article how to start a profitable pos business in Nigeria,we shall explore all the necessary steps that needs to be taken to make sure you are not getting anything wrong and that you select the best merchant for your operation. Read on. Starting a pos business in Nigeria Steps to starting profitable pos business in Nigeria step 1 – Select a viable location for your business We suggest you select a location with a large settlement of people and ensure there are no or not too many commercial banks nearby.Such location will always be reasonable for pos business in Nigeria because most people would prefer to patronize you rather than spending so much money to transport themselves to commercial banks coupled with the fact that they would be made to wait before they can be attended to. Another viable location for pos business in Nigeria are the big markets, especially those that doesn’t have commercial banks.You can conduct a survey on your environment to determine whether pos business will function very well there before establishing pos business in Nigeria step 2- Select which pos business merchants to work with Today there are too many pos business merchants out there issuing pos machines to customers to operate pos business in Nigeria. Prominent among them are Paycentre Opay(paycom) Paga Kudi Firstmonie Among others Each of these pos merchants have their procedures to follow before they can issue out their pos machines to prospective pos business owners. Some of them would require a prospective customers to perform a certain unit of transactions using their mobile app or codes before they can be issued a pos machine for their operation. Example is opay that requires a customer to perform 150 units of transactions with their mobile app before they can be issued a pos machine. Firstmonie usually conducts a physical inspection to your chosen location to confirm the viability of your chosen location before pos machine can be issued to you. Paycentre would require you to sign up with them by supplying all your information and payment of administrative charges before their mpos(mobile pos) can be issued to you. All of these companies have their Procedures they follow to issue pos machine to their customers but a point worthy of note is that yhey all would take your information including bvn number before the pos machine can be issued to you. My recommendations I personally would recommend paycentre because of their easy and seamless pos acquisition procedure, their very minimal service charge which almost no merchants can match as of the time of writing this article and their minimal service failure rate. I however would also recommend having an alternative to ensure that you are always able to perform transaction even if one merchant is experiencing service failure. Opay is also a very good alternative especially in terms of cash transfers as they charge as low as #10 per transfer to any bank no matter the amount. Step 3- Setting up a pos business shop how lucrative is pos business in Nigeria? After you might have selected the location to use and acquired the pos machine to use, the next step is how to set up a pos business shop. Setting up a pos business shop shouldn’t cost a fortune, in fact you can start with a mini kiosk or a small contain or a small affordable shop. You only need to ensure that your money and pos machines and other devices will be safe from theft or burglar. Get a designer to design a beautiful banner for you to promote your business and to create awareness that pos business is being operated there. Word of a mouth marketing is another means by which you can get people to patronize your pos business shop. Capital requirement to start a pos business in Nigeria. The capital required to start a pos business in Nigeria would be determined by various factors which includes, the pos business environment of it’s in high brow areas where people would need to withdraw in the volume of #20,000 and above, then this would undoubtedly required a large starting capital, likewise if it’s in the market where people would need to make large withdrawal to purchase markets or the markets sellers would need to deposits their daily sales at the pos business shop, this would also require a large capital to start a pos business in Nigeria But if it’s in the low class areas where people withdraw in lower volumes, this may not gulp a lot of money. But generally, starting a pos business in Nigeria would require a starting capital of not less than #100,000 and above depending on the location. How does pos business in Nigeria charges for transactions Pos business charges varies according to location and the transaction amount. However the details below would give the idea of how the charges looks like depending on the transaction. The best bet is also to conduct a visibility study in your desired pos business location to determine what your competitors in the area are charging transactions Pos business service charges example #1000- 5000 [#100-#200] #6000- #10,000 [#200- 300] #11,000- 20000[#300- #500] #21,000 - #40000 [#500- #700] And the list goes on to #2500 which is the benchmark for the pos business service charge as mandated by the central bank of Nigeria. It should also be noted that many pos business operators in Nigeria have the same charge per transactions for both cash withdrawal or cash deposit. How does mobile money operators charges Pos businesses in Nigeria per transaction? The service charges varies according to the merchants. Some mobile money operators charge their merchants 0.08 percent of the total transactions. However, the higher the transactions performed, the lower the charges levied on the merchants in ascending order. Company like paycentre charges their merchants as low as #8 for a #1000 cash out and #38 for #5000 cash out while they charge as low as #165 for a #40, 000 cash out.This seems to be the lowest charges I’ve seen among other pos service providers in the industry and I am not really sure if they are the best in terms of service and charges but they just seems to be the best I’ve used. Whereas they also have their flaws which varied from poor customer service to inability to print out transactions receipt to customers. how profitable is pos business Pos business is one of the most lucrative small scale business in Nigeria today in terms of profit. A small pos business owner with a good amount of sales daily can generate as much as #7000 daily profit and above. That is an average of #200,000 monthly if you are lucky to be in a location where there is constant sales and high volume transactions. Remember the higher the volume of the transaction, the lesser your merchants will charge you and the higher you’ll charge your customers. POS business nairaland Pos businesses charges as much as #800 on a withdrawal of #50,000 whereas your merchant would not charge you above #200 for that transaction.Meanwhile you only need to perform 10 of such transactions per day joined with many other smaller or higher transactions to guarantee a profit of #10, 000 and above daily . additionally I also need to mention that most of not all pos merchants have a unified static #50 charge on all cash transfers to any banks. So therefore, cash transfer transaction is an Avenue to make a lot of money. For instance if you transfer a #100, 000 for a customer and you charge #1500 as service charge,whereas your merchant are only charging #50 for that transaction, that means a total profit of #1450 for you on a single transaction. How sweet? How to start a pos business system in Nigeria Another plus is that cash transfer transactions also saved you from the stress of having to go to bank to withdraw every now and then. The customer gives you cash and you’ll use the same cash to perform cash withdraw transaction. Saving you transport cost to bank and also saves you time and stress while also making a decent profit on that. This is the part of the pos business I enjoyed most .lols In conclusion, I think with this article on starting a profitable pos business in Nigeria that guarantees #200,000 and above monthly, we have been able to cover the areas such as How to start pos business in Nigeria setting up pos business shop in Nigeria How to get pos machine to use for pos business in Nigeria What is the capital requirement to start a pos business in Nigeria? Where is the best location to start pos business in Nigeria? How profitable is pos business in Nigeria? Among others. With these clear expository on starting a pos business in Nigeria, I don’t think there is anything that should delay you to start your own pos business in Nigeria today. For further guidance and counseling on the effective way to start your own pos business in Nigeria today, selecting the best pos merchants to use , assistance in getting a functional pos machine to use for your business without stress and quickly at low cost , Credit: https://www.24hoursnews.com.ng/pos-business-in-nigeria/ 9 Likes 2 Shares |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by sulaimon22: 8:25am On Sep 07, 2019 |
informative |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by Nobody: 9:17am On Sep 07, 2019 |
Great writeup |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by Lilmusbibabanla(m): 11:44pm On Sep 07, 2019 |
Thank you |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by IdJack(m): 6:02am On Mar 19, 2020 |
Lovely information |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by Goldengeorge(m): 8:37pm On Feb 02, 2021 |
Great writeup... God bless the team |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by atop1(m): 8:06am On May 29, 2021 |
Here is an interesting article i have found. How to start POS business in Nigeria (Get POS fast) it also have a FREE online you can take https://posbusiness.com.ng/how-to-start-pos-business-in-nigeria-get-pos-fast/ |
Re: Starting A Profitable POS Business In Nigeria That Generates Above #200,000 by omalicha2: 8:40am On May 30, 2021 |
Good one |
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