How to Start a POS Business in Nigeria – A step by step guide

Whether it’s in the city you live or in the rural area, Point-of-sale (POS) business is gradually becoming one of the most lucrative or profitable business ventures any entrepreneur can thrive in Nigeria. If you are interested in starting this business, then follow the start outline here below.The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer (which may be a cash register printout), and indicates the options for the customer to make payment. It is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service. After receiving payment, the merchant may issue a receipt for the transaction, which is usually printed but can also be dispensed with or sent electronically.

How Does The POS Business Work?

In a POS business, the client first request transaction like withdrawal, transfer, or bill payment and presents the debit card.

Next, the Agent selects the type of transaction on the POS terminal device, enters the amounts, inserts the debit card into the machine, and asks the client to enter the four-digit pin secretly.

Then, using the network, the General Packet Radio Service (GPRS) connects with the bank’s server to authorize the transaction. When successful, it immediately prints out the receipt.

This process can be repeated for as many customers as possible, as long as you abide by the transaction rules of your host (bank).

Type of POS Machines.

The mobile POS machine is the most popular version of the POS machine. However, there are other types like countertop POS and Tablet PC-based POS machines. These types can be more expensive to acquire and are commonly used in big supermarkets.

See Also: Top Business Opportunities In Lagos And How To Clinch Them

The Importance Of POS Business

With a POS business, banks now reach a larger demographic. Also, they offer more flexible and convenient access to existing and new customers.

In addition, they ensure customers’ safety and help reduce travelling long distances to have access to banking. Most importantly, it significantly boosts financial inclusion, especially for people in rural areas.

How Do POS Agents Make Money?

The business has provided job opportunities and financial stability by helping the Agent make money in the following ways;


Banks pay agents commission based on the volume of transactions on their behalf.

Service Charges

By rendering service to customers, you can also charge them a particular amount, especially on bills, taxes, and subscriptions.


Depending on your cash management policy, you can use cash deposits and net of withdrawal for your primary business.

By operating this business, you are not only increasing your stream of income, but you are also serving the needs of the people in your community. And with a location that sees high human traffic, you can be making as much as ₦7,000-₦15,000 daily.

How to Become a POS Agent and start the Buisness in Nigeria

The process of starting a POS business is easy and can be completed within two weeks to a month, provided you meet the requirements of the host bank.

Startup Capital:

To start a business like this, experts say the amount of money will range from N80-100,000 including money to get the POS machine. This will also cover expenses in getting other logistics needed to start the business.


This is one of the most important things you must have thought about when deciding to run this business. A strategic location is a place where there are a good number of people who will need to perform simple financial activities. Remote areas, student environments, markets, and places where banks and automated teller machines (ATM) points are far from the people can be a perfect location to begin the business.

Get a Shop or Kiosk

This will serve as the local or nearest financial institution to the people where they can perform simple transactions like withdrawal, payment, bank transfer, etc. Your shop or kiosk should be designed in such a manner that it notifies people you’re running a POS business. You can achieve this with a small board put in front of your shop to alert customers from a far distance who are looking for a POS terminal.

Get the POS Machine

This is also one of the most important tasks of the business. According to experts, there are two ways of getting a POS machine, through commercial banks and or other finance agents.

The cost of acquiring the POS machine varies from issuing agents and how strong or advanced the connection runs. To get a POS machine from a bank, there are some requirements that ought to be met in accordance with the CBN directives. However, whichever bank you decide to approach, it is to your advantage that you own an active account with them.

According to the CBN, the requirements for starting a POS business include a valid means of identification, for example, a national ID card, voters card, active driver’s license or an international passport. A registered business name is also needed as well as a POS location, passport photographs, account number, phone number, business email address, and bank verification number (BVN).

Some of the designated banks assigned to issue POS machines include First Bank, United Bank for Africa, Guaranty Trust Bank, Diamond Access Bank, Zenith Bank, Wema Bank, Keystone Bank, Fidelity Bank, Union Bank among others

However, there are alternative options to get the POS machines from which include microfinance banks, and mobile operators like Interswitch, Quickteller, Paga, FirstMonie, Opay, etc. In the case of the latter, the business operators get to work as agents while the mobile operators act as hosts.

Other major requirements include passport photographs, Bank Verification Number (BVN), Current Account references, and evidence of business registration (CAC Certificate)

Once your application is approved, you will receive the POS machine and you may begin offering your services to customers.


A POS business is an additional way of getting income. Aside from your existing business, it is a way to expand service offerings and one of the best methods to cross-sell your products/services to walk-in customers.

The business needs to be situated in places with no bank branches or busy environments with enough security measures. You are sure to increase your daily revenue if you get everything right.

Are you considering this business? then follow this steps and be successful. Also, please share this content with your audience if you find it helpful.


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