How To Start A POS Business In Nigeria

The point-of-sale (POS) business, often known as agent banking, is a profitable business that you can start in Nigeria. Transferring funds, withdrawing funds, selling recharge cards, and paying bills such as GoTv, DSTV, Startimes, and PHCN bills are all part of the business.

A point of sale (POS) device, often known as a point of purchase (POP), is a device that allows local debit cardholders to pay for goods and services in a retail setting. Pos machines are a great automated product since they eliminate the hassle of carrying cash about, transacting with cash, and so on.

It also provides immediate notification/confirmation of payment for products and services. As a result, everytime you make a cash withdrawal or a transfer with a pos agent, you will receive an alert. Pos business has several challenges and problems that you should be aware of before getting into it.

If you’ve ever queued for an ATM in the scorching sun or during a rainstorm, you should know that this business will thrive at any time. People now have a viable alternative to bank cash withdrawals and POS transfers. Opening a bank account and obtaining a bank verification number (BVN).

Pos is a tremendously profitable business. It is a well-known truth that money trading or other money-related ventures are extremely profitable. This is a business that has the potential to employ thousands of people, particularly young people. That is why this article is being written in order to inspire people to enter this lucrative business.

In this article, we will consider the following:

  • How to start a POS transaction business in Nigeria.
  • How profitable is the pos industry?
  • Where a POS Business should be located.
  • How much money is required to establish a pos business?
  • Where can I acquire a POS machine?
  • Benefits of running a POS Business.
  • How to be successful in the POS Business.
  • Challenges of POS Business


If you’ve been seeking for a way to make money through POS or want to start a MOBILE ATM CASH BANKING business in Nigeria, now is your chance. This post includes a full step-by-step guide. POS machines are currently used by a large number of small businesses. Shops, supermarkets, hair salons, boutiques, and other such establishments are examples.

Those who desire to start a pos business in Nigeria as their primary source of income. The following are the requirements:


The first step in starting a POS firm is to choose a financial institution to work with because they will be the source of the services you will provide to your consumers. Banks, Quickteller, Paga, and other financial services are examples of good financial services.


Almost all Nigerian banks allow for agency banking. So, once you’ve decided on a bank, the next step is to approach that bank and learn more about their requirements. According to the CBN instructions, you can be an agent for as many banks as you like.

On the transaction conditions, you will need to fill out some documents/agreement forms. The bank then assesses your application against CBN internal standards and, if you meet all of them, enters into an agreement with you.

In addition, as part of the proposal’s requirements, you must have a business account with direct deposit and supply some documentation.

The following are some of the required documents:

  • Driver’s license, National ID card, International passport, or voter’s card are all acceptable forms of identity.
  • BVN
  • 2 passport photographs
  • 2 current account references
  • Evidence of business registration (CAC Certificate)
  • Tax Identification Number (TIN)
  • Memorandum and Article of Association.
  • Credit Bureau Report
  • A minimum working capital of N50,000


  • Zenith Bank,
  • First Bank,
  • Access Bank,
  • Ecobank,
  • Skye Bank,
  • Fidelity
  • Diamond bank and so on

Each bank has its unique way of doing things, so you’ll have to talk to them one-on-one to find out what’s needed.

Banks provide free POS machines. You don’t have to pay anything, but there are certain restrictions. Some banks, for example, would only grant you if you have a customer base of 1,000 or more. Every transaction you make is subject to a 10% charge from your bank.


Some microfinance institutions, such as Fortis Mobile, provide POS machines. However, you must register as an agent for a mobile money company.

INTERSWITCH: Interswitch is an immediate debit and credit service, although it does not currently accept Visa cards.

Quickteller, Paga, Branpos, Pocketmonie, Firstmonie, Opay, Paycentre, Nexgo Pos, Citiserve, and other mobile money operators are only a few examples.


Paga is a mobile payment system that allows you to send money from your phone. Using the Paga platform, you can send money to any area in Nigeria and receive money from different countries (through Western Union, MoneyGlobe, and other famous payment methods).

There are currently agents on the platform from all around the country, and there is still room for more.

If you want to work for Paga, all you have to do is follow these instructions.

  • Go to Paga’s official website, which is the only one available.
  • The home page of the website has a wealth of important information. You may read reviews to get a better idea of how the site works and what it has to offer. Click the ‘Get Started’ option when you are ready to begin your own account registration.
  • You can also go to the bottom of the webpage and click on the FAQ link. Customers will find two sections, while agents will find the third section. The agent section contains all of the information needed to become a Paga agent. You can also send an email directly to with your request. To make it easier for the Paga team to contact you, don’t include your full name and contact information in your email letter.
  • You will receive a response from one of the local Paga agents in your city or area once you have received the email. The representative will supply you with all of the required information on how to become an agent.

As a Paga agent, you’ll be required to work with clients, and your responsibilities will include registering new clients, assisting users with financial transactions (if they request it), and assisting users with loading and withdrawing funds.

You will make money by promoting this company’s services in Nigerian communities. A lot of advantages are available to you. These benefits include a commission for each transaction completed by your client, participation in Paga training, and increased traffic to your business as a result of your partnership with Paga.


Your objective as a Firstmonie Agent is to lessen reliance on over-the-counter transactions while delivering easily tailored services. Account opening, cash deposits, airtime purchases, bill payments, withdrawals, and money transfers are among the services you provide.

You may earn extra money from your growing business by becoming a Firstmonie Agent in your town.


Quickteller is another great point-of-sale system. You can earn significant commissions for all Quickteller services as an agent, providing you with a second source of income. You can also become a Quickteller agent if you are a Nigerian citizen with a legal business. Individuals, small and medium-sized organizations, and institutions are all examples of agents.


It’s best to choose an area with a small number of banks or ATMs if you want to succeed in Pos business. Select crucial sites such as bus stops, public markets, and event hubs, among others. All of these variables will have a significant impact on your daily profit.

Once you’ve found a nice spot, build a shed or a shop, but leave enough room for you and your customers to walk around quickly. Display a banner at the door to advertise the retail banking services you provide.

Then, to prevent theft and burglary, you can wear a customized purse/pouch around your neck or keep your valuables in a safe with a powerful lock.

You can also go there to advertise your service if you observe an ATM is not dispensing cash. Some folks in need of money might sign up for your service.


Pos machines can be obtained in one of two ways: through banks or through agency banks. A new POS machine would set you back between N85,000 and N100,000. Some institutions, such as First Bank, provide free POS machines if you match their criteria.

You’ll need to have a bank account. Most of these institutions require you to keep a current account, while some will accept a savings account. Contact your bank’s customer service or account officer for assistance.

You must also obtain the POS document from your account officer or the bank’s local branch. You can get the document from some banks’ websites. Then fill in the required information, attach the relevant signatures, and submit the form to your bank.

Getting the equipment sent to you usually takes several days or a couple of days. POS terminals and support are generally free, however, you will be charged a fee per transaction.

POS terminals take debit and credit cards in the same way that ATMs do. Buyers of goods can make payments straight to a seller’s account instead of paying with cash.
It can be configured for bill payment such as airtime (recharge card printing), DSTV, and GOTV, among other things. POS systems can be modified to collect school fees, rent, taxes, and donations, among other things.


  • Have a point of sale
  • Have a business name that is registered.
  • A photograph for a passport
  • Rent it or buy it outright.


  • Have a company name
  • Number of the account
  • Email address for business
  • A Contact number
  • And few more

The account officer will be contacted. Within 72 hours, you will begin processing the documents. You will receive the POS in less than 14 days. You will, however, be forced to sign a POS agreement with the bank.

Read How to Send and Receive Money into a Domiciliary Account in Nigeria

Services to be Rendered

For real-time transaction processing, the company employs POS terminals, card readers, mobile phones, and bank-linked mobile wallets.

After you’ve obtained these, the next stage is to begin offering the following services:

  • Cash deposit and withdrawal
  • Balance inquiry
  • Funds transfer services (local money value transfer)
  • Bill payment (taxes, utilities, tenement rates, subscriptions, e.t.c)
  • Generation and issuance of a mini statement
  • Cash disbursement and cash repayment of loans
  • Agent mobile payments/banking services


To attract customers, you should print banners and display them at your business location. You don’t have to spend as much money on advertisements as you would think. Your banners should not cost more than N6000 to design and print.


If you don’t want to pick up the pos machine from the bank, you can buy one from a company that is authorized to sell them. They are a registered aggregator with the Central Bank of Nigeria’s (CBN) authorized PTSPs (pos terminal issuers in Nigeria). Possessing your own POS machine will provide you with numerous benefits.


The cost of a pos machine varies depending on the agency firm from which you purchase it and the type of pos machine in question. Machine prices are decreasing from their previous levels. We now have pos machines that cost within the range of N50,000 to N100,000 depending on the type of machine you want to purchase. The difference is similar to the difference between 2G, 3G, and 4G in that the more money you pay, the better the service.


Rural Communities: You’ll agree with me that there are fewer banks and financial institutions in rural areas, thus starting a POS firm will be a huge success. Many parents would eagerly embrace this business in order to transfer money to their children for school fees, maintenance, and other obligations. Others who must travel downtown to conduct business will be relieved.

In areas where ATMs are always congested or where there is a scarcity of banks/ATMs. People are usually in a hurry, thus not everyone likes waiting in lines at ATM machines; nevertheless, if they notice an option, they will gladly embrace it regardless of the fees.

I noticed that the company does well in close proximity to markets and banks. When a bank ATM displays an inadequate fund message, many people who want to use the money may rush you.

In your place of work, especially if you deal with a lot of money or have a lot of customers.

Read Top Employable Skills You Should Learn in Nigeria 2021


Collecting large fees is not a good idea. You can put N300 for a ten thousand Naira transaction, which is 3% of the total amount.
Always be available in your location, because if you are constantly away, clients will assume you are not serious.

Because it includes money, it must be kept in a secure location. So that hoodlums don’t take advantage of your good looks by robbing you.

For security reasons, only accept enormous sums if you are sufficiently guarded; otherwise, if some bad men find out that you handle significant sums, they may strike.


It is preferable to purchase your own POS machine rather than use the free version. When they say free, they don’t mean it’s fully free; you’ll still have to pay for the pos. It’s called mpos, and it’s not a computer per se, but rather a device that you can sync with your phone.


There are a number of conditions that must be met in order to receive a free POS machine. You must demonstrate that your company can handle a daily transaction of N100,000. It is typically given to persons who are already involved in or have previously done agency banking and live in high-traffic locations.

You can buy something for yourself with the money you spend for registration N15,000 or more. It’s known as agent registration, and it’s required. The free mobile pos takes 30 days to arrive, and you must first connect it with your smartphone before you can use it. You will not charge more for utility bills or airtime recharges as an agent; instead, you will charge a fee to the user.


It functions without the use of a smartphone. You receive the value of the transaction in your wallet right away. You send money to your bank from your wallet.

After purchase, you will receive your POS machine within 3 working days.

On cable TV, electricity bills, and airtime recharge, you get a bonus commission. You also profit from the commissions you charge your users.


Light source or source of power. Some rural settlements lack consistent light, while others lack it entirely. As a result, after acquiring a generator, you will have to spend more on fuel to run it. In order to keep your company functioning smoothly and your consumers happy. The operation necessitates the use of a machine, which must be powered at all times.

Network issues: a friend of mine informed me about how she got to one school; there was no network when it came to starting transactions. She fought for a while and eventually excused herself. She also informed the proprietor that she would return once the network was up. In any case, there is a way to conduct business using your phone and avoid embarrassment.

Some argue that phone transfers are preferable to pos, however, large companies with many employees require pos. Transferring phone numbers is both dangerous and inconvenient. The main issue is the network. Some warnings take several hours to arrive, and you may receive a reversal of funds that a customer has already acknowledged you have posted.

Theft/robbery: it entails the theft of money, as well as the threat of being attacked since you are exposed to it. Maintaining security necessitates the expenditure of funds.

Inability to keep control of the crowd forming around you.


  • Decongestion of the banking system
  • Individuals and businesses have business opportunities.
  • Banks will save money.
  • Increasing the number of people who can use banking services
  • Inclusion of financial resources
  • Banks will be able to acquire more accounts.
  • The creation of jobs

Because consumers typically come for withdrawals rather than fund transfers, the POS business requires a lot of liquidity, which means you must have plenty of cash on hand. Withdrawals, fund transfers, bill payments, and the selling of recharge cards or top-ups to all networks without purchasing vouchers are among the services available.


Because it entails providing a variety of services, the POS industry has a high-profit margin. You may print and sell recharge cards with a pos system. This one alone generates a significant profit. You can become financially independent with the money not to mention when additional services given throughout a day are factored in.

You earn from commissions, banks, and cable. The bank costs you receive come from your clients, not from you.
As a result, you have nothing to lose and a lot to gain. However, you must charge in accordance with bank commissions, or it should serve as a guide for your rates.

Assuming you transacted with 30 persons each day and received a fee of N200 for every transaction, your total profit would be N6, 000. You could have made N150,000 in a month, if not more. Remember that there are other services to make money from, such as recharge card sales, cable sales, and education voucher sales.


A POS business is an additional source of income. It is a way to increase service offerings and one of the finest ways to cross-sell your products/services to walk-in clients, aside from your existing business.

The company should be located in areas where there are no bank branches or where there are suitable security measures in place. If you do everything correctly, you will almost certainly improve your daily revenue.

Start a pos business and make more than N5,000 per day and more than N200,000 per month from anywhere. It’s a good business idea that you should consider as an entrepreneur. It’s possible to do it as a side hustle. You won’t need any software to print recharge cards with pos; instead, you’ll be printing them directly.

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