POS means Point of sale services. POS business is one of the most trending small scale business in Nigeria, it is also known as agent banking. It is lucrative and requires little capital to take off. It was introduced following the Central Banks introduction of mobile banking and guides on operations and management of the POS business.
POS business was introduced as a retail channel to provide financial services in rural areas where there are no financial institutions and ATM.
The services provided by POS agents includes transactions such as withdrawal, deposits, fund transfers, payment of bills, Airtime recharge etc. Apart from using POS in the rural areas and payment of bills, POS services can also be used in big shopping malls, filling stations, hotels, eateries, Pharmacies etc to adhere to the cashless policy.
POS agents provide the above-mentioned services and at the same, time gets paid an agreed amount as a commission by the commercial bank they collaborate with.
Successful Steps To Start POS Business In Nigeria
STEP 1: Survey and get a good Location.
For you to achieve success in this business, you need to locate or site your POS business in a good business area. You need an area that is not close to any financial institution, ATM or has been congested with the presence of other POS agents. This is because it will create serious competition and the little customers available in that area will be shared. Rather choose strategic places like market, places where there are no banks and ATM, rural areas.
You also need to choose a location that has a high traffic of people who will patronise you and increase your turnover thereby increasing your profit as well.
STEP 2: Get a good shop
Look for a good shop that will provide the comfort and space your customers will need when they come to patronise you.
You can also provide banners at the entrance of the shop as a means of advertising your business. The banner or any other means of advertisement will help people or even passers-by to know that such business is in existence there.
Make sure that the shop has enough security inside. Since you are dealing with huge cash, the need to satisfy your customers at all times, you need a vault or a small safe where you can keep your money to avoid theft. Provision of burglary proofs on the doors and windows is very necessary to serve as a security measure in the night.
STEP 3: Make Sure you have a registered business name.
Due to the provision of Central Bank operation guidelines and policies to be followed when establishing a POS business, Commercial banks try as much as possible to follow the guidelines before authorising any POS business for their customers that apply for such.
For any commercial bank to approve you as an authorised agent for their POS retail banking, you must have an existing business registered with the Corporate Affairs Commission and that has lasted for a minimum of 12 months before you apply.
If the above criteria are in place, you are eligible to be registered as a POS agent by any commercial bank of your choice.
STEP 4: Apply to any Commercial Bank of Your Choice
All Commercial banks in Nigeria operate or accept POS retail banking services. Once you choose a bank to be used, preferably choose a bank that you have been transacting with.
Go to the bank and get required details for application for POS business. A form will be given with terms and conditions attached which you will fill. After filling, the bank will review your application in line with Central Bank guidelines. After reviewing your application and you meet the necessary criteria needed, the bank will now approve your application and sign the agreement forms with you.
Note that before your takeoff, you must have a bank account with the bank that will enable your customers to deposit and withdraw.
STEP 5: Initial Capital requirement
After fulfilling all the requirements, the account to be used for the business must be funded for ease of operation. You must have a least #50, 000 in your account for a start.
STEP 6: Acquire a POS Machine
It is the banks' responsibility to provide the POS machine for its customers. It is provided once the applicant has met the criteria required. The POS machine takes several days to be ready and delivered to the owner. Without the POS machine, the agent will not be able to start the business.
With your POS machine in place, you can now start your business of deposits, withdrawal, payment of bills, funds transfers etc. Also, you will go ahead to advertise your business by telling friends and family about it.
While doing tour business, be sure that your charges are not too high in such that it will scare your potential customers away. Charge responsibly.
Conclusion
POS business has become one of the lucrative small scale business anyone can venture into as far as you can meet the required criteria.
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