How To Start POS Business In Nigeria (Best Guide)

POS business is a money transaction business which has been going on silently with little awareness. But now, it is becoming more popular.

Most people prefer using POS for cash transaction because of the convenience it renders, especially to those who like things done easily.

If you have ever visited an ATM and queued under a hot sun or rain drop waiting to collect a little token, then you will know that this business will flourish all year round.

Nowadays, people now have a good method of sending and receiving cash, opening account and BVN registration.

POS business is very profitable not just that but for the fact that trading on money or money related venture is profitable, it is a lucrative business.

This is a good means of creating employment for people especially youths in order to reduce idleness which sometimes leads to Juvenile Delinquency.

This is why we have brought this post to encourage people to see the good thing about this business and give it a try.

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What is this post talking about?

  • How to start POS transaction business in Nigeria.
  • The amount it will cost to start up a POS business.
  • How and where to get POS machine.

If you want to do a MOBILE ATM CASH BANKING business in Nigeria or have been looking for a way to earn money through POS, here is an opportunity. A procedure to achieving this purpose is highlighted in this post.

Many wholesale and retail businesses like shops, supermarket etc now use POS machines for transaction.

Also, in this our cashless economy people no longer carry cash about instead they pay for goods with their ATM via POS.

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How To Start POS Business In Nigeria

For those who want to run POS business as their main business, here is the way forward.

1. Rent a shop

It is important to get a shop where you can stay to set up your business.

An interesting thing about this business is that it does not require large space, a small portion is enough to start with. You can rent or use a room in your apartment.

It is good you get your Pos machine from the bank because it will help you over your customers.

2. Find a location

Your shop should be situated at a place that is visible and accessible. A good location is important because as your patronisers increase so your profit increases. Use the banners that will be given to you by your mobile agents to decorate your shop. This will create awareness of your business to people.

3. Get capital

An estimate of 100,000 is needed for this business which you will use for such things as withdrawal, payment, point of sale, purchase if there is need for it. You also need money to rent a shop.

4. Get a POS machine

You can get a POS machine in two ways:

  • Banks
  • Agency banks.

What is the meaning of POS?

POS stands for point of sale. Also called point of purchase. It is a device that allows a buyer with a debit card to make payment for goods and services at the place of sale or purchase.

Pos is a good form of cash payment as it reduces the danger and stress of carrying cash about. You now have to pay directly with your debit card and the amount would be deducted from your bank account.

You would be given a debit alert for any amount deducted for payment, cash withdrawal or cash transfer with Pos agent.

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There are some challenges and problems associated with Pos business which you should know before embarking into this business.

With POS buyers can pay directly to seller’s account without paying in cash. It accepts debit/credit cards the same way as ATM.

You can also use it for other payments such as bills for Gotv DSTV, recharge airtime (recharge card printing).

Pos can also be used to pay school fees, rent, tax, donations and lots more.

Requirements for obtaining POS machine

  • Have a registered business name
  • A passport photograph
  • Have a sales point
  • Pay cash or get it on lease.

What you need to do to get POS from bank

  • You need to have a business name
  • Have an account with the bank.
  • Business email address, and
  • Other minor details.

An account officer will be directed to you. He will start to process the documents under 72hours. Within 14days the Pos will be given to you. The bank will require you to sign a Pos agreement document with them.

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Purchase POS machine with a CBN licensed PTSP

There are those who are given license to sell Pos machines. This companies are registered aggregator with CBN LICENSED PTSP(issuers of Pos terminal in Nigeria).

You can purchase Pos from this companies, if you don’t want to get from the bank. You really stand to gain a lot from having your own Pos machine.

Price of POS machine in Nigeria

The cost of Pos varies. It depends on the agency company you want to buy from and the type of Pos machine you want.

There is a reduction in price of Pos machine now compared to its former price. There are machines that cost as low as #45,000, #65,000, #75,000 etc.

The higher the price, the better service. It just like network service, 4G, 3G,2G. The higher the money, the better the quality.

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List of banks where you can get your POS

  • Ecobank
  • Skybank
  • Accessbank
  • Fidelitybank
  • Firstbank
  • Zenithbank.

The above listed banks operates in their own way and pattern. All you need to do is to get the required details from them one on one.

The Pos machines are given free by banks, you don’t pay for it. Although there are T&Cs that applies to them.

For example, some banks give out their Pos machine when you have up to 1,000 customers and above.

Again, if your products can be sold over 1million naira daily, banks will charge you certain percentage for every transaction done.

Other ways to get your POS machine

1. Interswitch

Interswitch is an instant debit and credit which does not accept visa cards for the main time.

2. Micro finance bank

There are some micro finance banks like Fortis Mobile that gives out Pos machine. But you would need to register as agent mobile money company.

There are many mobile money operators like: Quickteller, Paga, Branpos, Pocketmonie, Firstmonie, OPay, Pay centre, Nexgo Pos, Citiserve, etc.

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Commission from different agencies

Previously it was:

  • Transfer N150
  • Cash deposits N150
  • Withdrawal N150.

The N150 commission you pay on every transaction is the same for all banks.

Currently, it is now 1% deduction all over on every transaction, the minimum fee is 0.75% while the maximum charge on Pos (CAP) which was N2,000 is now at the rate of N1,200.

NB: find out the current charges from your agent as commissions can be changed at any given time.

For recharge card printing

  • Glo 6%
  • Airtel 4%
  • 9mobile 3.5%
  • MTN 3%.

ForOR data bundles

  • Airtel 4%
  • 9mobile 4.5%
  • Glo 4%
  • MTN 3%
  • Spectranet 4%
  • Smile 3%.

For bill payments

  • DSTV 7%
  • Startimes 2%
  • PHCH 2%
  • GoTV 2%
  • DSTV 2%.

The same applies to companies you may like to use.

School prepaid voucher

  • Jamb 6%
  • WAEC 6%
  • NECO 6%
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Areas you can set up your POS business

1. Rural Areas: We all know that few number of banks can be spotted in rural areas. That is why setting up a Pos business in such area will be very profitable.

Many parents that live in these areas will welcome the idea as they can now have access to send/receive money from their children living far away from home.

Other business men/women who do business in these areas will be glad as their business transactions will be very successful.

2. ATM Crowded Places or Places Where it is Difficult to Locate a Bank or ATM

The way things are being done in our society you will discover that people have lost their patients to wait accordingly. This has tagged Nigerians as always in a hurry.

Only few can wait for their turn under a long queue for ATM withdrawal, while others will use the available alternatives not minding the charges.

It has come to my notice that this business flourishes where markets and banks are located nearby.

ATM can frustrate people sometimes when it tells you ‘insufficient fund, issuer operator unavailable or out of service’.

This is the time people who urgently need money will run to you, the same goes with market people who want to buy at the market but with shortage of money.

3. In your business area, where you handle large amount of money or have a good number of customers.

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How to succeed in POS business

1. Charges

Do not charge too high, bring down your own commission. For example, you can charge #300 for a Ten Thousand Naira transaction, that is 3% on any cash transaction.

2. Availability

Try to be always available 24/7. This is to tell your customers how serious you are with your business.

3. Position

Let your shop be at safe position, that is to say while you are renting a shop look for a place that the security is tight to avoid theft.

4. Security

Always be security conscious by not accepting large sum of money to avoid bad gangs or hoodlums attacking you when they notice you handle large sum of money.

The difference between getting a free mobile POS machine and acquiring your own

It is more profitable for you to purchase your own Pos machine than to go for a free version.

The free version is not completely free as they may tell you because you will still tender some token to get their POS.

This version is called MPOS, so it is not a machine to say but an app which you can sync into your phone.

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There are some conditions that are attached to get a free Mobile Pos machine.

1. You must show that your business can earn a 100,000 transaction everyday. It is mostly given to people who have done or are already into agency banking and who live in a high flow traffic areas.

2. You must pay #15,000 or more for registration. They call it agent registration and it is compulsory. But you can add more money to this registration fee to buy your own Pos.

3. You will pay for branding materials, courier for the Pos delivery, and also for transportation fare for physical visitation of your location or the address where the terminal will be used.

4. It takes over 30days to get free mobile Pos which you still have to sync into your smartphone before you can do any transaction with it.

5. You will not charge extra for utility bill, airtime recharge as an agent, but only from the commission you charge users.

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Regular POS (for purchase only)

1. You get instant value of amount transacted into your wallet. It works independently without smart phone.

2. You make transfer to your bank from your wallet.

3. After payment you get your Pos machine within 3days.

4. No target to accomplish.

5. You earn from the commission you charge users as well as extra commission on cable TV, utility bills, airtime recharge etc.

Challenges in POS business

1. Electricity Power Supply: Lack of power supply is more seen in rural areas. Some of these areas may have non-steady light or low voltage while others may not have at all.

You may now have to spend more on fuel to power your generator or purchase an inverter or solar energy if you have the money. This will help to keep your business going and more happy customers.

2. Network Issues: Sometimes network gets bad and this may cause some kind of embarrassment for you when trying to carryout a transaction.

Although there is always a way you can use your phone alongside the machine to do the business to avoid embarrassment.

3. There are people who prefer phone transfer to Pos. But one thing you should know is that phone transfer is risky and frustrating with poor network as the major challenge. Besides, big companies with many staffs need Pos.

Sometimes you get a reversal of money a customer confirmed you posted and some alerts takes long to come.

4. Theft/robbery: There is the fear of possible attack because you are exposed to such attack. Since your business involves money making you have to guard yourself and money carefully in every possible means.

How profitable is POS business in Nigeria?

Pos business is a very profitable business because it involves rendering many services. This services include printing and selling of recharge cards and lots more.

This one alone brings enough gain for you not to talk of other services it will render to you. Then calculate the profit.

2. The money made from commissions, banks, and cable is enough to enrich you financially. The charges the banks collects is not directly for you but your customers.

So there are much to gain and nothing to lose. But make sure your charge is according to bank commission or their commission should guide your charges.

3. Let’s say you did a transaction with 40 people a day and your commission is N150 for each transaction. That amount of commission will give N6,000, in a month you make over N150,000 or more.

Bear in mind that there are other services you can use to make money in this business like recharge card sales, cable and School voucher, etc.

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Why you should go into POS business

1. The demand for all the services is high as stated earlier on, which signifies that there is plenty over turn for you which guarantees a huge profit.

2. The business can be done by anybody that means there is no difficulty in it . The processes are clear and easy.

3. In this business you are a helper especially to people who spend so much money and time to get monetary services.

4. There is much profit because the demand for the services is high.

5. The need for this services will always occur, so it is sustainable.

6. The business does not have many people involved in it.

How much do you need to begin this business?

Depending on the kind of Pos you want to acquire and the services you want to be rendering. POS business does not cost much to begin.

If you consider getting it directly from bank, you will need about N100,000 and above for the business. This money is not included for your shop rent.

Meanwhile, if you wish to buy from agency company then about N300,000 is needed. You can use #100,000 to take care of the Pos machine while N200,000 can be for withdrawal payment.

Do not forget that there must be cash in your bank account for transfers.

You may begin in a small way until the demand for your services increases then you can also increase in capacity as your capital keep increasing.

Those that their Pos is from the bank have no commission to pay but just to adhere to the rules and procedures of the bank.


There is no stress in marketing this business because the business markets itself. Once your banner is displayed in front of your shop, people will come to you for transactions. You can also tell some people who may not know anything about the business.

You can strike a deal with market people, religious bodies, companies, institutions etc.

Lastly, as a new business you can print fliers and distribute around your location and neighbourhood.

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As an entrepreneur you can do this business as a side hustle. You will make more than N5,000 every day and more than N200,000 monthly in a good location. It is a nice business to begin and be sure of a huge profit in return.

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