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How To Start A POS Business in Nigeria – 2023

Ultimate Guide to Starting a Successful One

Do you know that starting a POS business can be an ideal and good decision for you? One good thing about this POS business is that you can start it even with little money, In fact a lot of people start this business with less than N100K, Though starting it up with huge amount is advisable but for those that can afford huge amount of money can also still start this business. I will tell you everything you need to know about POS business, How it works and how to start a POS business in Nigeria.

How Does POS Business Work in Nigeria?

In Nigeria, the POS (Point of Sale) business is growing rapidly because it provides a convenient and accessible means for individuals to access financial services. POS agents, also known as merchants, utilize POS machines to perform transactions such as cash withdrawals, deposits, transfers, bill payments, and mobile phone recharges. This machines accept electronic payments via debit or credit cards, allowing customers to make purchases or withdraw cash without the use of ATM machines.

POS agents often charge a commission for the services they provide. The fee cost varies depending on the type of transaction and the banking institution or payment processing firm with which you are dealing.

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Services Offered By POS Merchants

  • Cash deposit: Customers can deposit cash into their bank accounts by using a POS agent.
  • Funds transfer: Using a POS agent, customers can transmit money to others.
  • Cash withdrawal: Customers can withdraw cash from their bank accounts by utilizing a POS agent.
  • Airtime/Data recharge: Customers can recharge their mobile phones by utilizing a POS agent.
  • Bill payment: Customers can use a POS agent to pay their bills, such as energy, water, and cable TV bills.
  • Account opening: Some POS agents also provide this service, Yes you can open a bank account via POS merchants.

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How to Start a POS Business?

Here are some criteria you should think about before starting a POS business in Nigeria. They consist of:

#Step 1. Have An Existing Business

The POS Business is quite sensitive since it involves money. The type of people who are qualified to act as agents has been highlighted by the Central Bank of Nigeria. Therefore, commercial banks take extra care before they approve an agent for their retail banking.

You must already have a business that has been operating for at least a year in order to be qualified and available for this business. Additionally, you must have a place of business. Additionally, make sure that you have registered as one of the following entities with the Corporate Affairs Commission:

  1. Sole proprietorship
  2. Public Entities
  3. Limited Liability Company
  4. Cooperate Societies
  5. Partnership

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#Step 2. Choose A Bank Of Your Choice

After completing the first which is “having an existing business,” picking a bank of your choice and learning about their requirements is the next step. In Nigeria, agent banking services are accepted by 90% of banks. If you have the ability to serve, you can represent as many people as you can.

You will also be given a form to complete. This document functions as a witness. In essence, it is a contract between you and the host bank. It has to do with your application’s terms and conditions. In addition to this, you would be asked to provide some documents like:

  1. A minimum working capital of ₦100,000. The maximum could be ₦150,000 or more.
  2. A national ID card, an international passport, or a voter’s card. All these constitute a valid means of identification
  3. Tax identification Number
  4. Two passport photographs
  5. BVN
  6. Two current account referees
  7. Evidence of your business registration

#Step 3. Get A POS Machine

choose a bank of your choice and be registered as a POS Business agent with any entity of your choosing. You are qualified and able to purchase a POS device for yourself. not just from anywhere, but from the bank of your host. some popular options include Opay, Moniepoint, First bank and Access Bank among others.

Purchasing a POS machine could cost you up to 50,000 or more, depending on the model. If you don’t have enough funds to purchase a machine, you can consider renting one, Opay allows you to pay for the machine gradually after delivery.

Raise Some Funds

A POS business may require up to 100,000 in capital. However, at least N200,000 should be spent on starting a POS business in Nigeria. However, with only 50,000, you can still launch a POS business but as I previously stated earlier, It’s advisable to start with enough capital.

Get A Good Location

Due to their failure to locate their business in the ideal location, some people fail in business before they ever begin. Densely inhabited places are recommended for a POS business.

Look for congested areas that are active with foot flow and daily activities, such as markets, parking lots, neighborhoods, etc. Additionally, make sure to locate your POS company in an area with few banks and ATMs.

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How Do POS Agents Make Money?

Additionally, a POS Agent collects a particular amount of money from the customer for every transaction they complete. According to an experienced POS business agent, a typical POS service charges ₦50 for each bill payment, ₦100 for each cash withdrawal between ₦1,000 and ₦15,000, ₦150 between ₦16,000 and ₦20,000, and ₦200 between ₦20,000 and more. For a cash deposit, the same amount applies. In spite of this, you are free to set your own prices.


The POS Business offers excellent financial rewards. Following all of the aforementioned recommendations will ensure the success of your company.

If you found this post useful, please leave a comment and tell your friends who want to start a POS business about it.

An active POS merchants can make between #10,000 and #20,000 in profit per day.

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