A POS business also called agency banking is a business that involves providing electronic payment services such as withdrawals, transfers, and payment of bills for customers through a POS terminal.

POS business in Nigeria has become one of the most sought-after businesses due to the high demand the business attracts, high returns in profit, and low startup capital.

The term POS stands for Point Of Sales. It was introduced by the former president of Nigeria; Goodluck Ebele Jonathan, in 2013.

But this business became popular during the covid-19 lockdown in 2020.

When I started this business, I had just N200,000.

From that money, I was able to get a shop (which is more like an office now), do little furniture like desks, and chairs, and also got an android phone (Infinix hot 7).

After the whole expenses, I was left with about N100,000.

To cut a long story short, I made N40,000 in the first month.

The next month I employed one staff with a pay of N10,000 and I made close to 100,000 Niara that month (second month).

For the first 6months of running this business, I never paid myself a dim, the reason was that the demand began to increase and my capital wasn’t meeting up.

So I made sure all my profit (after paying my worker and buying the monthly pos paper roll) is returned back to the business.

It took me exactly 1 year to make my first N1 million naira in this business. Since then, my business has been generating 7 figures on a monthly bases.

You too can be like me😎.

All you have to do is, carefully read this article and leave your questions in the comment section if you have any, and I will personally answer you.

Before we dive into how to start a pos business in Nigeria, let’s understand what a POS business is all about;

What is a POS business?

POS business is also called Agency Banking.

A POS (Point of Sale) business involves providing electronic payment services to customers through a POS terminal.

This POS system device enables customers to make payments using their debit or credit cards, mobile wallets, or other digital payment methods.

A POS business can operate as a standalone enterprise or as an additional service offered by an existing business such as a retail store or restaurant.

How to start a POS Business

Starting a POS (Point of Sale) business in Nigeria can be a lucrative and rewarding venture.

With the growing need for efficient payment solutions, there is a high demand for POS services across the country. 

The need for secure and reliable payment methods has never been greater.

In this article, I will provide a step-by-step process for starting a POS business in Nigeria, including the requirements, challenges, and opportunities.

1. Conduct Market Research

Before starting a POS business, it’s essential to conduct market research to understand the demand and competition in your desired location.

Some key questions to ask during market research include:

  • What is the demand for POS services in the area?
  • Who are the competitors, and what extra services do they offer?
  • What are the pricing and profit margins for POS services in the area?

The location you decide to settle for must have very high foot traffic such as residential areas, commercial districts, and universities.

But note, not all residential areas have high foot traffic.

To locate a residential area with high traffic (both foot and vehicle); conduct research on where the last bus stop is in that area or a major spot where many other streets meet (more like a T-Junction or Four-Junction).

I speak from experience because my Own POS was set up in a residential area.

Also if there is a filling station in that area, it is an excellent spot to also consider.

2. Get Registered

To start a POS business in Nigeria, you need to register your business with the Corporate Affairs Commission (CAC).

This involves choosing a business name, filling out registration forms, and paying the registration fees.

But if you feel your startup capital is too low, and can’t accommodate the expenses of registration, you can start as an unregistered pos agent merchant with your personal name as the account name.

Though, back then this registration wasn’t compulsory until some POS agents started becoming a nuisance.

So all the banks were given a strict order not to register any new POS agent that has not yet registered with CAC.

But fintech banking platforms like; Opay, Moniepoint, Palmpay, and the like still allow new agents to start with their personal account, using their personal details without going through the CAC registration.

3. Obtain a POS Terminal

The most critical component of a POS business is the POS terminal.

To obtain a POS terminal, you need to partner with a financial institution such as a bank or other payment service provider (Fintech).

To obtain a POS machine, here is the list of things you must provide;

  • ID Card
  • Utility Bill
  • Referee (Banks only)
  • CAC registrations (Compulsory only for Banks)

4. Choose a Location

Choosing the right location for your POS business is critical to its success.

You need to choose a location with high foot traffic and minimal competition.

Ideal locations for a POS business include markets, shopping centers, commercial areas, and residential areas.

Not to omit, filling stations are also good spots because you will enjoy free security from them.

I already explained more when choosing the right location in market research.

5. Hire Staff

To run a successful POS business, you need to hire competent staff to manage the terminal and provide customer service.

It is not just about hiring competent staff but also looking out for trustworthiness❗️

There are competent and experienced people out there but only a few can be trusted.

In fact, it is better to employ an inexperienced staff that is trustworthy, because you can teach them.

When also hiring staff, gender, and age is something that you should seriously consider;

According to my own observation from experience in hiring staff for my pos business, the female gender seems to have a purer intention to work than the male.

Most of the male gender, have an interior motive (which is mostly evil).

And also the female gender seems to easily submit to laws more than the male.

One good thing about hiring the male gender in this business (if you are lucky to find a good one) is, they seem to bring balance into the business in your absence.

By balance I mean, there are some customers that like to intimidate pos staff when they notice they are all female.

But if you have a guy among them, that disrespect will be at the barest minimum.

Also, age is something you should put into consideration.

For example, a friend of mine who also runs a POS agent business got an application from a 40years old man with a BSc.

And he is just 29 years old. Obviously, that application is automatically denied.

In fact, it is advisable according to standard recruitment policy only to employ staff that is teachable, willing to learn, and can receive orders.

A 40years old man won’t submit to your ideology because at that age his willingness to learn is zero (0).

That is why banks and other institutions don’t employ those above 25 years. The only exemptions to those above 25 years are; if you have worked in a similar position and in a similar industry before.

You must have a limit to age when recruiting staff

The reason why I’m focusing on the gender and age thing is that; this business is very volatile. -You employ the wrong person your business might not exist again.

Another important thing to put into consideration when hiring staff is if they are conversant with numbers and with the calculator.

Please always do that test and if they fail or have difficulties interpreting numbers (whether due to poor eyesight or illiteracy), don’t hire them (even if that are your family member).

And if they can’t use the calculator, don’t hire them. -When I say calculator, I meant business calculator, not scientific calculator please❗️

Because the only difference between N20,000 and N200,000 is just one additional zero (0).

6. Advertise and Promote Your Business

To attract customers to your POS business, you need to advertise and promote your services.

Some effective advertising methods include flyers, banners, and word of mouth.

But the best way to advertise your pos business is through good customer service.

Due to the poor and terrible customer service rendered by most pos agents, customers seem to recommend good customer service to their friends.

That was also part of my strategy in increasing my daily transaction from 50 transactions daily to over 200 transactions daily.

Challenges of Starting a POS Business in Nigeria

Starting a POS business in Nigeria can be challenging due to some factors such as:

  • High competition from existing POS businesses
  • Poor internet connectivity
  • Security issue
  • Regulatory challenges such as obtaining licenses and permits (to use some platforms)
  • Poor Bank Network
  • Inflation on working materials
  • CBN cashless Policy

How profitable is a POS business?

As I said earlier in this article, the POS business is a very lucrative business that can pay you up to N1 million naira monthly.

This Business is very profitable if you treat it as a business and not a quick money scheme.

The reason why many people struggle to make it in this business is due to the wrong motive for coming into the business.

They see the POS business as a means to make a living, some even see it as a means to extort from others. Which is very wrong❗️

If you come into this POS business as a means to provide solutions to a need for secure and reliable payment methods, you will be able to take decisions that will put the customers first and over your greed.

There are many POS agents who bought their first land through this business, I know of one who started building his house through this business.

So yes this business is profitable but you must treat it as a means to meet a need not a means to make a living.

Only in that will you be able to succeed in this business and that your need you are worried about will be automatically met.

How much does it cost to start a POS business in Nigeria?

The cost of starting a POS business in Nigeria as an agent is dependent on the settings you want.

For me, I choose an office build and that cost me a fortune.

But many others chose to use a wood shop or caravan shop, some umbrellas while others decided to pair with a shop owner.

Let’s break down the cost of each of them;

The Cost of starting a POS business in an office:

Office building Rent = N150,000 per annum
Furniture and Fittings = N150,000
Office Maintenance = N40,000
Miscellaneous expenses = N20,000

Total expenditure = N360,000

The cost of starting a POS business in a wooden shop:

The wooden shop = N35,000
Land rent = N36,000 per annum
Furniture and Fittings = N15,000
Miscellaneous expenses = N5,000

Total Expenditure = N91,000

The Cost of starting a POS Business in a Caravan;

Caravan = N70,000
Land Rent = N36,000 per annum
Furniture and Fittings = N30,000
Miscellaneous expenses = N10,000

Total expenditure = N146,000

The cost of starting a POS business using Umbrella ☂

Cost of Umbrella: N6,000
Table and Chairs: N3,000
Space Rent: N20,000 per annum

Total Expenditure: N29,000

The cost of starting a POS business pairing with a shop owner

Chair and Table: N3,000
Rent: It is dependent on your agreement with the person

Total Expenditure: N3,000

Those are the cost of starting a pos business in whatever form you desire.

The only additional cost that you will incur is getting the POS; which is free with commercial banks but not free with Fintech banks.

For the Fintech banks, a pos cost between N20,000 to N50,000 depending on the financial service provider platform you choose to partner with.

But if you choose to work with multiple financial services providers (fintech), it is also allowed and recommended due to unstable networks on all POS platforms.

So, if you add the money to any of the total expenditures of your choice, you can get the estimated amount of how much you need to start a POS business in Nigeria.

Which bank is best for POS business?

I will divide this section into two. Section one will be for commercial banks best for POS business while Section two will be for Fintech Banks best for POS Business.

List of commercial banks POS best for POS business;

  1. First
  2. Access
  3. FCMB
  4. Zenith
  5. Eco
  6. Uba
  7. LAPO

List of fintech banks POS best for POS business;

  1. Monie Point
  2. Opay
  3. PalmPay
  4. Kudi

How much is POS charge in Nigeria?

Depending on the financial service provider; The POS charge from commercial bank POS is higher than that of the fintech banks.

The POS machine charge on commercial banks ranges from N100 to N300 with a share percentage of 60% to 40% (60% for you and 40% for the commercial bank). – That is how POS companies make money.

But for banks like Access, First bank, and Fcmb, they seem to give 70% to 30%; 70% to you, and 30% to them.

The share percentage is inclusive of both Withdrawals and Transfers.

For the Fintech banks, they have the cheapest and most beneficial percentage share of; 0.05% per N1,000 and a flat charge of N100 from N20,000 upward.

This means if you charge N300 for N50,000, you get N200. -Isn’t that wonderful!

And they have a flat charge of N20 per transfer on any amount.

Don’t think that N200 per N50,000 is small, is not❗️ Because this business is not about profit margin per transaction but about cumulative profit from all transactions.

This means more turn over more profit period❗️

This brings us to the next question;

How much do POS earn?

In continuation of my previous heading, If you want to earn like me in the POS business you must understand that the business is about numbers, not margins.

In fact, if you think of charging high let’s say N600 per N50,000 so you can make a profit margin of N500, you will end up losing customers to competitors and even if you do not have competitors in that area currently, your high charge will make the business too open for other competitors to come in.

But if your charges are low let’s say; N300 per N50,000, using the fintech pos machine you can make a margin of N200 per every 50,000. and N100 for below N50,000

If you are able to follow all the procedures I have mentioned in this article, you will be able to attract a daily transaction of 150 per day.

Multiply that 150 transactions by an average margin of N100 = N15,000 per day.

If you multiply 15,000 by 30 days = N450,000.

Note, my calculation is based on the average, not the actual margin. By using the actual margin you will make more money.

So if you follow the method I have taught you in this article, you are guaranteed a minimum of N450,000 monthly – That is more than what most bank managers earn per month.

Remember to leave a comment below if you have a question.

Read Also:


Can you start a POS business with 50k?

Yes, you can start a POS business with 50k if only you are working with a commercial bank pos machine. And you are pairing with a shop owner.

But NO, you can’t start a POS business with 50k if you want to use a fintech pos machine. I already explained that in the article.

How much can I withdraw from POS in a day in Nigeria?

How much can I withdraw from POS in a day is the same as asking “How much is the POS limit in Nigeria?” This is dependent firstly on your bank’s card;

“Some bank cards can’t pull out more than N500,000 per day which is the minimum limit set, except the customer goes to his bank to upgrade the maximum withdrawal to his desired limit.

Secondly, the cash of the POS Agent can also be a limit of how much he can pay you per day or at that moment.

How much is Moniepoint POS machine?

The Moniepint POS Machine cost N20,000 with an additional N1,000 for insurance. The cluster manager (aggregator) might decide to add a logistics fee to get it delivered to you.

If you need help with access to the Moniepoint machine, make it known in the comment section I will reply to you with an aggregator phone number.

You can read more on Moniepoint pos terminal

How much will it cost to get OPay POS?

To get an Opay POS varies as they provide you with an option of 3 kinds of Opay POS machines;

  1. Traditional POS N35,000
  2. Mini POS N8,500
  3. Smart POS N50,000

You can read more on the Opay merchant POS terminal

How to start a pos business with GTbank

Unfortunately, GTbank no longer accepts pos agents and they long removed everything related to POS agents on their website.

The only type of POS service that is currently being rendered by GTBank is the Merchant POS which is designated only to business owners for seamless transactions.

Although, the Merchant POS is transaction charges free, and for that reason you as an agent might be tempted to take advantage of it. It is advisable not to, as the Merchant POS is programmed in such a way that it take the next day for all today’s transactions to reflect (normally called Drop).

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  1. Thanks read and noted,i have already opened a POS business but i want to become an agent how can i do it.

      1. Tanks for ur advice sir I want to start a POS business but with this guidelines I think it will help

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