Globally, point of sale POS in recent times has become a popular place where customers make payments for goods and services, a point where sales taxes may become payable. This transaction occurs in two different proportions, online and onsite, with receipts generated either in print or electronically. The Nigerian banking sector is not left out as the POS business is becoming increasingly popular among merchants in affiliations with different banks for funds withdrawal and transfer.
A system, which is a computerized network service consists of the main computer linked with several checkout terminals and supported by different hardware features starting from barcode scanners and ending with card payment terminals.
Individuals and businesses are adopting POS systems, for speed access to cash and fast track payment at shops. One of the most understandable and fascinating reasons is that a POS system does away with the need for price tags as selling prices are linked to the product code of an item when adding stock at the point of payment, so the cashier just needs to scan the code to process a sale.
POS systems are intended not only to serve the retail, wholesale, and hospitality industries as historically is the case. Nowadays POS systems are also used in goods and property leasing businesses, equipment repairs shops, healthcare management, ticketing offices, and many other operations where aptitudes such as the following are required: processing money transactions allocation and scheduling of facilities, keeping records and scheduling services rendered to customers tracking of goods and processes invoicing and tracking of debts and outstanding.
Starting a POS business?
The services offered include withdrawals, fund transfers, bill payments, and the sale of recharge cards or top-ups to all communications networks without buying vouchers.
It is a business opportunity that has created employment opportunities for most of the Unemployed youths in Nigeria reducing the rate of unemployment to the barest minimum, POS which is also recognized as an agent banking business is a lucrative business that you can start.
Principally, the business also encompasses payment of bills like GoTV GOTV.com, DSTV DSTV.com, and PHCN. The POS outspreads the services presented by financial institutions like banks to customers by making the service more convenient and accessible. Hence, the fee you charge customers for this service is called a convenience fee.
The business thrives in areas where they are limited or no banks or ATMs. As people will always require cash for different needs and will be glad to go to a POS point where they can be quickly served at a minimal cost.
However, the benefits of POS include Bank decongestion, Business opportunities for individuals and businesses, Cost Reduction for Banks, Extension of banking services to a wider range of customers, financial inclusion, increased account acquisition for the banks, and Job creation.
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Here are tips for starting a pos business in Nigeria
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FIND A HOST
The first step to starting a POS business in Nigeria is to get a reliable host with good benefits. The host is a financial institution that is the source of the services you extend to your customers.
For instance, UBA https://www.ubagroup.com/pos/, Quickteller quickteller.com, Paga paga.com and so on. These are financial institutions with payment services that can be used to transfer funds through your phones to any location in Nigeria and receive money in and outside the country.
The financial platforms have agents all over and there is still room for more as long as they are willing to extend their services. All you need to do is visit their organization or navigate the official websites provided for the service.
You will earn money by offering this company’s services in their local communities in Nigeria. You will receive several benefits which include a commission for each transaction performed by your client. And as long as you are a Citizen of Nigeria with a legitimate business you can become a POS agent in your locality.
GET A LOCATION
Your location is as important as your business, especially a location where they are limited or ATMs or banks are an excellent location for POS. Therefore, a good location for your business should be a place where people need cash such as motor parks, Markets, densely populated residential areas, and villages/remote areas.
Nevertheless, your outlet or shop should have enough room to comfortably facilitate your transaction with your customers.
And for beginners with low capital, you can start in an open space so far, your money is safe from theft or robbery, as the location may not be necessarily a shop.
ACQUIRE A POS MACHINE
Because most of your customers will come to make funds withdrawals, therefore you will need to have a POS machine. Some banks offer free POS machines all you need to do is meet up with their requirements.
You must have an account running with the host bank. Most of the banks require you to maintain a current account while you are good to go with a savings account for others. All you need is to contact the bank’s customer support or account officer https://www.ubagroup.com/pos/
The POS machine also comes with a document from your account officer or the nearest branch of the bank. Some banks allow you to download the document online. Then fill in the required details append the necessary signature and submit to your bank.
Once you get your machine, you can install and start your cash business operation.
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ADVERTISE YOUR BUSINESS
The right awareness creation is one of the spices for business growth. You should print banners and display them at your business location in other to attract customers to your POS point.
Easy to start with some challenges
Normally, a mobile money agency is not capital intensive. However, there are challenges to the business such as Robbery, source of power,, and internet network failures. But in the long run, the business is worth trying because it markets itself.
POS business in Nigeria is a lucrative one for individuals or groups looking forward to starting a small business. You must ask questions about how to get customers, https://businesspost.ng who your potential customers are, the bank with good commission rates, the cost and charges by the issuing financial institutions. All these and the many other factors that affect the action and reaction you get in your business should be addressed and planned out before the birth of the business.
