Do you want to become a pos agent or start a POS business in Nigeria? This ultimate guide on how to start a POS business from Dockaysworld would surley help you acheive 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 hottest 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.
It is so common now to see someone running a POS business anywhere you turn to in Nigeria. There you can perform various types of monetary transactions.
The POS business has become quite lucrative, and everyone wants to get involved in this upcoming multimillion venture. Vendors are cashing out daily and you can be part of them too.
But, what should you know before you start a POS business in Nigeria?
In this guide we’ll look at the overview of the Nigerian POS business, how to start a POS business in Nigeria, the cost of starting one, the best banks to use, networks you can join, and the requirements too.
Overview Of The POS Business
The Point of Sale (POS) business came into the Nigerian scene in 2013. This was after the Central Bank of Nigeria introduced the agent banking system that year.
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?
The Point-of-Sale (POS) business began in Nigeria after the Central Bank of Nigeria introduced the agent banking system in the country.
Here’s how the whole POS business and its transactions work.
A POS agent operates and carries out transactions through a service provider. The POS provider 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.
Reasons Why The POS Business Is A Viable Business
The viability of the POS business in Nigeria has been proven time and time again, with the results of how well this venture has done being out there for all to see.
In a country like Nigeria, where most retail businesses can’t access electronic payments, consumers resort to carrying cash around, even when most of them would prefer to go cashless.
However, since the introduction of the POS business, not only can customers pay how they prefer, but with ATM spaces being crowded, people can just walk to a nearby agent to get cash within minutes.
POS or Agent banking services have become Nigeria’s mainstay of financial transactions. Below are some reasons why this business is lucrative for millions of people in Nigeria.
1. The low number of functioning ATMs in the country causes long queues.
2. Poor network connections at ATM points and banking halls have made many customers find alternative ways to perform monetary transactions.
3. The POS business also helps consumers withdraw money easily when the closest ATMs in their area are far from them.
4. Most people don’t know they can, or how to pay utility bills with their banking apps, so they’ll always look for POS agents to do this for them.
5. It is a simple business that doesn’t require much capital or furnishing of a shop. With an umbrella, chair, and table, you can start up this business.
6. There is a limitless number of people who perform numerous transactions every day in marketplaces, streets, motor parks, etc. So, you won’t be looking for customers, they’ll come to you.
Statistics Show That The POS Business Is Lucrative
Still, doubting how lucrative the POS business is and if yours will survive in Nigeria?
Here are some statistics that show 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 accoriding 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 accoridng 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.
5. 21 out of 33 participants in a survey taken in different parts of the country by TechPoint, said they prefer to use banks. 23 people said they use a POS agent often. 19 reported that they hadn’t visited their bank in over two to five months.
The surge in e-payment transactions in Nigeria, which is a direct result of the growth in POS business operations, is an opportunity to make wealth that has come to dwell in Nigeria.
This initiative positively impacts millions of Nigerians. So, if you’ve been stalling, now is the time to utilize this opportunity and start the POS business now.
Services Offered By POS Business 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 (Bank Verification Number) enrollment.
How To Start POS Business In Nigeria

To become a mobile money agent or start a POS business, here is the step-by-step process on how to start a POS business in Nigeria
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 Nigeria and in your area. 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 you 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.
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. Do this, and you’ll be well on your way to becoming a POS agent.
6. Apply To Become An Agent
Based on the bank or financial institution you’re applying to as an agent or for a POS machine, you may need to purchase one outrightly, 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.
- Although some banks only charge a fee of ₦10 for any type of transaction.
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.
Requirements For POS Business
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 a POS business:
1. Capital
As we mentioned earlier, you’ll need to find out how much it would cost to kickstart your POS business.
As earlier mentioned, the capital needed for the POS business is not expensive because you don’t need a lot to start the business.
2. A Good Location
A good location is important when building a POS business. This is because if you’re positioned somewhere strategic, you’ll have a lot of people patronizing you.
Later in this article, we’ll discuss extensively how to choose a good location for your POS business.
3. Official Requirements
The Central Bank of Nigeria (CBN) has some set requirements POS agents must meet before they are approved by any financial organization.
To get a detailed list of all those things, you can either visit a bank or contact the customer care of any of the banks you chose.
Keep in mind that while the CBN permits POS agents to work with any POS service provider, the documents you’ll be required to submit might differ by provider.
Here is a list of some of those documents:
- 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).
- Startup funds/capital minimum of NGN50,000.
- 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 machine, which is either free or comes with a cautionary fee attached, so that you can start your POS business.
Best Location For POS Business
Finding and paying for the best location for your 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 that constantly need to perform monetary transactions.
Some places like this include – remote settings, student areas, markets, and places that are far from where banks and automated teller machines (ATMs) can be accessed by people.
Besides snagging a busy place to set up shop, these are some more factors to consider before you can choose a good 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 they’re 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. Other Factors
There are other factors too to consider before choosing a location for your POS business.
These are some of them:
- The population of people in the area.
- Demography of people in the area (students and office workers make for good customers as they frequently use the POS).
- Close to banks – many people will not opt for a bank and incur high charges for withdrawn money when they can do it at a bank 10 minutes away for a lower or no price.
How Profitable is POS business?
In October 2021, the total amount of transactions made by POS terminals hit 4.1 trillion Naira in Nigeria. These statistics are clear proof that this business is indeed profitable.
There are many reasons for this.
One of the reasons why the POS business in Nigeria is so lucrative is because Nigerian banks only open their branches in busy areas, where there are lots of markets or other types of businesses too.
Hence, people living far from those places will have to drive for like 30 minutes from their homes. Most people in Nigeria face this challenge and the POS business is a sort of relief for them because there’s one in their area.
So, the POS business has established itself in the country as a reliable alternative to banks, particularly for transfers and withdrawals.
Another thing is that this business doesn’t need much advertising because it is essential in every area. POS agents set up their shops in locations where they’ll be noticed. This positioning contributes to the lucrative nature of the POS business.
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 do POS Agents Make Money?
POS Agents Make profits from service charges they collect per each 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, that 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 feet to achieve, all you need to do is get approved by the terminal you choose to work with.
Next is to pick a good location and you can starting earning income as a POS agent.
How Much Does It Cost To Start a POS Business?
How much can i use to start a pos business? can i start a pos business with 50k?
These and many more questions fills the minds of those seeking to startup a POS business.
Well, there is no fixed amount for how much can be use 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 too.
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 for renting 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 from.
2. A POS machine/device:
The cost 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. But 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 for starting 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.
How much can I make from POS business in a month?
Most POS business agents report that they typically earn N150,000 – N250,000 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 higher the chances of people 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 the best bank for POS business to take note of:
1. How to start a pos business with First Bank
Here is a guide on how to start a POS business with First Bank:
How To Become A POS Agent For 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:
- Visit the FirstMonie agent banking site
- 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.
2. 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
How To Become A POS Agent For Wema Bank
Here is a guide on how to start a POS business with Wema Bank:
Follow these steps to register:
- Visit the nearest Wema Bank branch.
- Fill out the agent registration form.
- You will be contacted if your application is approved.
- You can also download the Wema Bank POS agent registration form.
- Print out and fill it out. Submit it to a Wema Bank branch and wait for more instructions.
3. How to start a pos business with GTBank
Here is a guide on how to start a POS business with GTBank:
How To Become A POS Agent For GTBANK
It does not cost anything to become a GTBank agent.
Here’s all you need to do:
- 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.
4. How To Start a POS Business With Ecobank Xpress Point
Below is a step by step guide on how to start a POS business 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.
- You can send an email to [email protected] to do a follow-up on your application.
5. How to start a POS business with Access Bank
Follow this guide to learn how to start a 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.
6. How to start a POS business with Zenith Bank
Note, it is free to become a POS agent for Zenith Bank, so do not pay money to any third party.
How To Become A POS Agent For Zenith Bank
Below is a guide on how to start a POS business with Zenith Bank:
- 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 start a POS business with Kudi bank:
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.
8. How to start pos business with Opay mobile bank
What is an Opay POS Agent?
An Opay POS agent is anyone who performs point of service transactions using the OPay POS Machine or terminal.
Below you will find the easy steps on how to start a pos business with opay
How To Become A POS Agent For OPay
- Download the OPay app on the play store.
- Send an email to [email protected] requesting for 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.
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 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 [email protected].
- Likewise, you can send an email to [email protected], or log onto the website. Click on Agent and Become an Agent to start.
- A Paga representative will contact you for more instructions on the registration process.
11. How to start a pos business with Monie Point
Here is a simple guide on how to start a POS business with Monie Point:
How To Become A POS Agent For Monie Point
- Visit the official Monie point website.
- 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.
12. How to start a pos business with Quickteller
How To Become An Agent For Quickteller
Below is a step by step guide on how to start a POS business 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.
13. How to start a pos business with Baxi Box
Below is a guide on how to start a pos bussiness with baxi box
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
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 a POS 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.
Conclusion
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 would be able to earn a decent living from the business.
We hope our ultimate guide on how to start a POS business in nigeria helps you achieve your goals of starting one.
Feel free to ask questions on the topic if you need further clarification and our experts would be here to assist.
See you next time.