How to Start a POS Business in Nigeria and Succeed in 2024


Do you want to become a Point of Sale (POS) agent or start a POS business?

This guide on how to start a POS business in Nigeria will surely help you achieve this.

A POS business or mobile cash agent is a person who gives cash to consumers through a POS machine in exchange for a commission or fee.

Presently, the Nigerian POS business is one of the most lucrative businesses an average citizen can start.

Due to the scarcity of Automated Teller Machines (ATMs) and long queues, the POS venture is gradually replacing ATMs because it offers patrons ease and convenience.

But, what should you know before you venture into this business?

In this guide we’ll look at the overview of POS business in Nigeria, how to get started, the cost of starting one, the best banks to use, networks you can join, and the requirements you need.

Overview Of POS Business in Nigeria

A POS business is a Point of Sale business that came into Nigeria in 2013 after the Central Bank of Nigeria introduced the agent banking system.

This introduction became a pathway for all other financially inclined services to connect with the public, majorly in the unbanked regions of Nigeria.

One major solution the POS business provided is that it reduced the endless queues at banks.

Furthermore, the proximity of  POS businesses solved stress and eradicated the need for people to get on transportation to go to the bank for trivia transactions.

This favors particularly, people residing in remote and local areas where banks are distant from their homes.  

How Does POS Business Work?

A POS agent operates and carries out transactions through a service provider.

The POS providers or terminals can be banks, Microfinance banks, and Fintech companies.

An agent always has cash ready to process transactions that will incur a bank charge fee.

In the POS business, as an agent, you’ll offer customers numerous transactions to select from like withdrawals, transfers, bill payments, and even opening a personal bank account. 

All of these financial services will be done for customers with a POS device which makes it possible for cash transactions to be carried out with a customer’s debit card.

You are to select the transaction type on the POS terminal and the amount. Next, the customer will input their 4-digit PIN accordingly.

The GPRS network connects the ATM card to the bank’s server to approve the transaction.

If the transaction is successful, the POS machine will print out receipts for you (merchant’s copy) and the customer too.

Is POS Business Profitable?

Yes, the POS business is a very lucrative venture.

In October 2021 alone, the total amount of transactions made by POS terminals hit 4.1 trillion Naira in Nigeria.

One of the reasons why the POS business in Nigeria is so profitable is because Nigerian banks only open their branches in busy areas, where there are lots of markets or other types of businesses too. 

Below are some statistics that prove that the POS Business Is viable:

1. From 2017 and 2022, there has been significant growth in the number of POS terminals in Nigeria. In 2017 there were 155,000 terminals, and in April 2022 there were an estimated number of 1.1 million terminals according to Statista

2. 2021 rounded off with POS transactions in Nigeria recorded as N6.43 trillion.

The figure is a sharp contrast to the N1.41 trillion received in 2017, N2.32 trillion in 2018, N3.2 trillion in 2029, and N4.73 trillion in 2020 according to Nigeria Inter-Bank Settlement System, NIBSS

3. POS merchants in a good location make up to N10,000 daily according to a survey Dockaysworld carried out in Ajah Lagos State.

4. In 2020 NIBSS reported that Nigerian merchandise and mobile money operators (MMOs), processed more than  655,000,000 POS transactions which were valued at ₦4.7 trillion ($13 billion), a 50% increase from 2019.

Services Offered By POS Agents

As a POS business agent, you’ll be approached by customers to assist them with a lot of banking activities. These are some of the services offered by POS business agents, you can provide for your clients too: 

  • Funds withdrawal from a bank account.
  • Opening of a bank account.
  • Depositing funds.
  • Payment of electricity, TV subscription, airtime, and other bills.
  • Transfer of funds.
  • BVN Enrollment

Requirements For Starting a POS Business in Nigeria

To successfully start up your POS business in Nigeria and beat the competition, you’ll need to get some items ready and follow some guidelines.

The following are the requirements for starting a POS business:

  • A Startup capital – minimum of NGN50,000.
  • A good and strategic location
  • A valid means of identification like a National ID Card, Voter’s ID Card, etc.
  • 2 Passport photographs.
  • Your Bank Verification Number (BVN).
  • 2 Current Account references.
  • Evidence of business registration (CAC Certification).
  • Tax Identification Number (TIN).
  • A Memorandum and Article of Association.
  • Credit Bureau Report

After your application has been approved by a bank, you will receive a POS divice, which is either free or comes with a cautionary fee attached, so that you can start your POS business.

How To Start a POS Business

how to start a pos business in nigeria

Below is the step-by-step process on how to start your POS business in Nigeria and become successful:

1. Find Out The Cost Of Starting the Business 

The first thing you should do is determine the cost of starting a POS business in your area.

This is because costs differ from person to person, and by location too.

This is because costs differ from person to person, and by location too.

The amount you will pay as rent for a shop or a space in Lagos will be different from what you will pay if you were operating in Ogun state. 

You’ll also need to know which bank or company you’ll be signing up with as an agent.

Does the organization give you a free POS machine or will you pay for it? Will you incur costs for their requirements? Put into consideration your shop as well.

How will it be? Do i need to get a safe to secure your properties? 

These are some of the things to think about first to get the total cost of starting your business.  

2. Register Your Business Name

While this step may not be a necessary one for everybody starting a POS business in Nigeria, some banks have it as part of their requirements, so might need to get this step done before applying to become an agent.

However, if what you want to do is to add the POS venture to an existing business or you have another way of getting a POS machine, then registering your business name is not compulsory.  

Follow this guide to learn how to register a business name in Nigeria with CAC.

3. Get A Suitable Location 

Since your business isn’t virtual or involves moving around, you’ll need to get a location that is densely populated. 

This place should house lots of people and be difficult to access banks or ATMs from.

4. Draft Your POS Business Plan

Creating a business plan might not be a necessity, but it’ll definitely help you stay on track with your venture.

The plan should detail your aims and objectives. There you’ll also put down an estimate of how much it’ll cost you to start your POS business.  

5. Get Capital

After determining the cost of starting your POS business, and getting a set figure, your next move should be finding a way to raise the capital.

6. Apply To Become An Agent

Based on the bank or financial institution you’re applying to as an agent or for a POS device, you may need to purchase one outright, get it on a lease, or for free.

 Decide which one is suitable for you based on the organization’s requirements, commissions, and charges.

You can either apply for a POS machine online or go to the bank or company’s office.

However, this process can take up to 2 weeks to a month for everything to be ready.

7. Get A POS Machine

A POS machine can be gotten from a commercial bank in Nigeria, and also from a few microfinance or Fintech banks.

When choosing a POS service provider, below are a few things to note:

  • The network or service
  • Cost of the POS machine
  • Charges for the transaction

Few POS service providers charge 0.65% and ₦10 for transactions lower than ₦10,000.

Transactions above ₦10,000 cost ₦50, however, some banks only charge a fee of ₦10 for any type of transaction.

8. Advertise your POS Business

Promote your business to your friends and through other means like on social media, sharing flyers, etc.

Also, Highlight your unique features and benefits to attract more customers.

Ensure that you compare the charges of other POS service providers before you choose the one you want.

Watch this video below from Vintage TV to get useful tips from this POS business owner on how he started his business and how much he makes.

Best Location For POS Business

Finding and paying for the best location for a POS business is one of the most helpful things you can do for your venture.

Additionally, a great location, assures large sales and profits.

This setup is among the most important things you must think about before you start running this business.

You know you have a strategic location when it is a place that is frequented by a large number of people who constantly need to perform monetary transactions.

Some of the best locations include:

  • Student areas
  • Inside Markets
  • Close to Fuel/Gas Stations
  • Close to Parks
  • Close Pharmacies or Eateries
  • Places far from where banks and ATMs can be accessed by people.

Besides snagging a busy place to set up shop, these are some more factors you must consider before you can choose a location for your POS business:

1. Network

A poor network connection can be a major turn-off for people when they go to patronize an agent, especially if they need cash badly.

Operating your POS business in a place with a good network or service will guarantee that you smoothly perform all your transactions and not disappoint your customers.

Similarly, a location with a poor network connection, will give you a lot of trouble and put you in frustrating situations.

If a customer visits your stand and discovers that you don’t usually have a good network, they might not visit your shop again.

Unless of course, you’re the only POS agent in that area.

2. Security

A POS business brings in a lot of cash, and you’ll be handling all that money.

This makes your POS outlet an easy target for shoplifters, petty thieves, and even armed robbers.

That is why, before you choose an area or start paying for a shop, do thorough research on the neighborhood or area by asking around so that you can determine the theft/crime rate.

3. Competition

If there are more than two POS agents in the location you want to operate in, then you should do yourself a favor and find somewhere else where the competition is low.

This is because most people will already be familiar with those other outlets and may not be willing to patronize your shop in large numbers unless your competitors are indisposed for the day.

4. Demography of people in the area

Students and office workers make for good customers as they frequently use POS.

5. Near a bank or ATM

Many people will not opt for a POS service and incur high charges for withdrawing money when they can do it at a bank 10 minutes away for a lower or no price.

Hence your POS stand should be situated away from Automated Teller Machines (ATMs) and banks.

How Do POS Agents Make Money? 

POS Agents Make profits from service charges they collect per transaction from a customer.

For example, if a customer comes to withdraw N5,000, you’ll charge N100 for the transaction and share it with the POS Provider.

You take N60 as your commission, and the bank or company will take N40.

This money will be earned from every customer that uses your POS for a transaction and some customers can do multiple transactions at a go, which means more money for you.

When you get a suitable location and earn the trust of the locals, you can make as much as an average of ₦7,000-₦10,000 daily.

How to Become a POS Agent?

Becoming a POS agent is not a hard feat to achieve, all you need do is get approved by the terminal you choose to work with.

Next is to pick a good location and you can start earning income as a POS agent.

How Much Does It Cost To Start a POS Business?

Well, there is no fixed amount for how much can be used to start a POS business, however, this doesn’t mean that you shouldn’t set aside a substantial amount for getting a shop, a POS machine, and for performing daily transactions.

This is a breakdown of things that might require you to spend money when starting your POS venture.

1. Shop:

The shop where you’ll open your POS business will be what will determine the amount of money you need to rent a store or kiosk or even an umbrella stand you’ll use as a shade.

You have to make inquiries and find out how much it’ll cost you to set up the office where you want to operate your POS business.

2. A POS machine/device:

The price of a POS device can range from 30,000 Naira to above 100,000 Naira.

This price is dependent on the bank or Fintech company you intend to use as your POS service provider.

On the other hand, some banks or Fintech companies can charge you 85,000 Naira for a new terminal.

Some of them also offer free POS machines, however, you must meet their requirements to receive one.  

3. Available Cash for transactions

If you want to fulfill your customers’ financial needs, then you must have a large amount of money set aside, especially for performing daily transactions. 

This amount can range from N100,000 to N300,000 on average.

This sum should be enough for daily business running.

There is no particular amount of money you need to start your POS business.

This is because that cost is entirely dependent on if you are renting a shop or not, or if you’re getting the POS terminal for free or not.

If you are looking for other business options, then our article on 30 Profitable Business you can start with 50k in Nigeria would surely give you some ideas.

How Much Can I Make From POS Business in a Month?

Most POS business agents report that they typically earn N150,000N250,000 as profit every month.

To make this amount in a month depends on the area you operate your business out of.

The farther your shop is from the bank or an ATM, the lesser the chances of customers patronizing you.  

Best Bank For POS Business In Nigeria? 

Many commercial banks in Nigeria offer POS services to entrepreneurs who are interested in becoming agents with them. 

Before you go into business with anyone, here are some of the best banks for a POS business to take note of:

  • Opay
  • Monie Point
  • First Bank (Firstmonie)
  • Wema Bank
  • GTBank
  • Ecobank (Xpress Point)
  • Zenith Bank
  • Access Bank
  • Kudi Bank
  • Paga
  • Quickteller
  • Bankly
  • Baxi Bax

1. How to start pos business with Opay Mobile Bank

Opay is undoubtedly one of the best banks to start a POS business in Nigeria.

With Opay POS terminal, customers can withdraw and transfer cash, buy airtime, pay bills, and many more services.

Below you will find the easy steps on how to become a POS agent for OPay:

  • Download the OPay app on the Play Store.
  • Send an email to requesting the OPay merchant application form.
  • You can also log into the OPay app and select the Merchant icon.
  • Enter your details.
  • Upload all the required documents.
  • Submit the application form for review.

2. How to start pos business with Monie Point 

Monie Point is another excellent terminal you can use to start your POS venture.

The registration is straightforward and they also offer a range of services your customers might need.

Below is a simple guide on how to become a POS agent for Monie Point:

  • Choose the option to become an agent. You will be directed to fill out a form, which you’ll be contacted with by Monie Point.
  • Confirm your email address and phone number so that a cluster manager can contact you within 48 hours.
  • You will be directed by the manager on what to do next to confirm your agent account with Moniepoint.
  • After your application has been approved, you can log in to the Moniepoint dashboard to manage your account.

You can also do the registration at a Moniepoint branch. An officer will guide you on the process of registration.

3. How to start a pos business with First Bank

To be accepted as a First Bank POS agent, you would have engaged in commercial activities for at least 12 months, and have a functional First Bank account for one year.

  • Below are the steps on how to become a POS agent for First Bank:
  • You’ll be directed to the FirstMonie agent onboarding form, which you’ll fill out and agree to the terms and conditions of their services.
  • Click the “Send” button to submit the agent request to FirstBank.

4. How to start a pos business with Wema Bank

You don’t need to pay to become a Wema Bank POS agent. Just have an existing business with a physical location and meet the general requirements for applying to become an agent

Here is a guide on how to apply as a POS Agent For Wema Bank:

  • Visit the nearest Wema Bank branch.
  • Fill out the agent registration form.
  • You will be contacted if your application is approved.
  • Print out and fill it out. Submit it to a Wema Bank branch and wait for more instructions

5. How to start a POS business with GTBank

It does not cost anything to become a GTBank POS agent.

Here’s all you need to do to start a POS business using GTBANK:

  • Have a current GTBank Business Current Account 
  • With a current account, you can visit the closest GTBank branch.
  • Meet the customer care staff and ask for the GTBank POS application form and the agreement form.
  • After your application has been approved, the bank’s customer care will contact you for the collection of the POS machine.

6. How To Start a POS Business With Ecobank Xpress Point 

Below is a step-by-step guide on how to become a POS Agent with Ecobank:

  • First,  submit your Ecobank POS agent application.
  • When your application has been received by the bank, a representative will contact you within 72 hours.

7. How to start a POS business with Access Bank

Follow this guide to learn how to start your POS business with Acess Bank:

  • Go to an Access Bank branch, preferably the place you opened your account, and ask for the agency banking application.
  • Fill out the Access Bank agent banking application forms you were given.
  • Ensure you fill in all the details with accurate information.
  • Submit your application to a banking officer who will ensure that it is reviewed by the right department.
  • After your information has been verified by the Access team, you’ll be registered for agent banking.

8. How to start a POS business with Zenith Bank

Note, that it is free to become a POS agent for Zenith Bank, so do not pay money to any third party.

Below is a guide on how to register as a Zenith Bank POS Agent:

  • Go to the nearest Zenith Bank and go to their customer service.
  • Request for their POS Agent registration form.
  • Fill and submit it 
  • After the form has been approved, you will be given a Zenith Bank POS machine.
  • Next, download the Zenith banking app on your phone and start your POS agency business.

7. How to start a pos business with Kudi Bank

Here is a guide on how to become a Kudi POS Agent:

  • Download the Kudi app from the app store.
  • Open an account with Kudi by signing up with your phone number.
  • Connect the Kudi bank app to your functional bank account.
  • After funding your e-wallet, you can start transactions.
  • Use the Kudi app for airtime recharge, TV subscription, and electric bills.
  • After using the app for 2 weeks, you can check your inbox or enquire about your eligibility for a free POS.
  • Similarly, you can go to a Kudi office or call their customer care to confirm your eligibility swiftly.
  • Visit the Kudi office at 19b Bosun Adekoya Street, Lekki Phase 1.
  • There, request the agent form, fill it and submit it.
  • You will be asked to pay a non-refundable fee of N20,000 there. 
  • The Kudi team will approve your application and you get a  POS machine  

9. How to start a POS business with Bankly 

How To Become A POS Agent For Bankly

  • Download the Bankly Agent mobile app.
  • Create an account by signing up on the app and include the KYC details.  
  • Your account must be verified before you continue with the registration.
  • You’ll be verified by Bankly support personnel.
  • After verification, log into the app and start your transactions

10. How to start a pos business with Paga

 How To Become A Paga POS Agent 

  • To start the business first fill out the POS agent form. 
  • After that, a Paga representative will contact you for the onboarding process. 
  • If you were not contacted after 7 days of the application, send an email to
  • Likewise, you can send an email to, or log onto the website. Click on Agent and Become an Agent to start.
  • A Paga representative will contact you for more instructions with the registration process.

11. How to start a POS business with Quickteller 

Below is a step-by-step guide on how to become a POS Agent with Quickteller:

  • Complete the application form and submit it along with the required documents.
  • Pay the Agent Start-up Capital (N10,000) into the IFIS operational bank account.
  • The Quickteller Agent location will be inspected and certified by an IFIS Business support partner. 
  • Quickteller activates your IFIS agent account and you’ll get the login details and credit alert.
  • The IFIS Agent Banking training and receiving the following setup kits:
  • IFIS Certificate of Completion.
  • IFIS ID for identification.
  • Transaction Log Book/Register.
  • An Agent code.
  • Branding materials.
  • Tariff Sheet

12. How to start a pos business with Baxi Box

Below is a guide on how to become a Baxi POS Agent

1. Download the Baxi mobile app on Google Play Store or Apple Store, OR buy the Baxi Pos from a sales representative.

2. Submit these documents for registration:

  • Completed Agent application form and agreement through POS.
  • Copy of an ID for you and your guarantor.
  • Proof of address for you and your guarantor.

3. Set up and activate your account:

4. Create data

5. Verify your location

6. Wait for the backend activation

7. Fund your Baxi agent wallet

8. Do the training and branding process.

As an agent, you will be trained and given a starter pack.

After the location has been branded, you can begin operating as an Agent and start earning money.

Alternatively, you can request to become a Baxi POS Partner by either filling out the onboarding form online or on the Baxi website.

These banks we have mentioned are some of the banks in Nigeria that are most preferred by POS agents.

Please keep in mind that you must first and foremost be registered as an agent of any of these banks before starting your POS business with them. 

You have to also create an account in these banks and perform regular transactions.


POS business in Nigeria is a lucrative venture anyone can start with minimal capital and make profit.

You just have to follow the right steps and you will be able to earn a decent living from the business.

We hope our guide on how to start a POS business in Nigeria helps you achieve your goals of starting one.

Feel free to ask questions and if you need further clarification and our experts would be here to assist.

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