Let me guess… You must have been seeing posters of First Money POS Business in some strategic locations but don’t know how to about it. Is it viable? Should I venture into such business?
POS business can be otherwise known as agent banking business. It involves the transfer of funds, withdrawal of funds, sale of recharge cards and bill payments like GoTv, DStv, Startimes, and PHCN Bill services.
This business is an extension of services offered by financial institutions like banks through which customers get convenience. Therefore the fee you charge customers for these services is called convenience fee.
The central bank of Nigeria in a bit for financial inclusion has thrown opens this opportunity. An avenue to create wealth.
The truth is, if you are in a location where no banks, or ATM point, this business will thrive because people will always be in need of money and won’t hesitate to pay the additional minimal charges on top.
Why is it Profitable in Nigeria?
It is profitable because you as the agent will make money from the extra fee charged on every transfer, withdrawal, bill payments and lots more. You must have readily available cash to give out because customers will come more for withdrawals than fund transfers.
What You Need to Set it UP
You can start POS business in Nigeria by getting a HOST. A host is a financial institution through which you extend their services to your customers.
This includes; First Bank, Quickteller, PAGA etc.
Getting POS Machine:
Getting a POS machine in Nigeria is absolutely free of charge, provided you get yours from one of the reputable commercial banks in the country.
In case you’re wondering what the bank stands to gain from giving you the machine for free, get this clearly: the issuing bank makes money on the long term by charging a fixed commission (between 0.25% and 1.5%, depending on the bank) per transaction done through each POS terminal issued.
To get a POS machine from any bank, all you need is to have an account with the bank.
Note, however, that there are now some other organizations issuing POS machines at a one-time fee.
Location: A location where they are limited or no ATMs or Banks will do. Apart from that, there should be enough room to contain your customers, a furniture divider between you and your customers. Create a place where customers will feel free to carry out transactions.
Get Quality Banner: For your business to be known and the people within that vicinity to be aware that you create such services, you should get a banner with the inscription boldly written “POS Withdral and Fund Transfer”.
Breakdown /Commission Structure of POS Agent Banking Business
Transaction Amount Fee paid by Customer
1 Deposit (own FirstBank A/C)
1- 5,000 N50
5,000-30,000 N100
30,000-100,000 N150
100,000 + N200
2 Transfer to FirstBank
1- 30,000 N100
30,000-100,000 N150
100,000 + N200
3 Transfer to Other Banks
1-20,000 N100
20,000-100,000 N200
100,000 + N250
4 Cash Withdrawal
1-10,000 N100
10,000-100,000 N200
100,000 N300
5 Bill Payment N100
To become a First Money Agent with First bank please check this link here
Are you into this business already? Let us know what you think.
It’s nice business idea, i have been thinking of lately.
Its a business i have always thought of setting up in remote villages but didnt actually know one could get the machine for free. Thanks for sharing
I have seen people running this business very welll…. A cousin once ask me about it, like how it runs… Cool
Good business tip to earn extra cash even for gainfully employed youths
I thought much capital was needed to venture into this. I’ll forward it to anyone who needs it
I need to do the business please add me in your WhatsApp 081603*****/ call 080824*****
I really love this
Very lucrative where they’re students, limited banks and atm
Na better business be dis
No doubt POS is a lucrative business. But one should be mindful of the area he wishes to set up such business. If the area is close to banks, the business might not move that much except he/she is lucky to find paytv subscribers. I have also written about some business that moves fast in Nigeria, you should check it out
We’re can one check it i really need it
The post is worth a bookmark… Nice from Prof…
Very interesting. Thanks for sharing
I am interested in the business but I bank with Gtbank so pls how can I apply for the POS machine in gtb.
I learnt GTB also gives free POS, just walk into the bank and ask more enquiry about their POS
Am been looking for dis information for a very long time….
I am interested in the business and I bank with gtbank, pls how can I apply for the POS machine in gtb.
Hello I’m interested and I bank with Access. How do I get it and how much is likely to be involved in starting up after getting a free pos??
Getting POS Machinge from your bank is free, kindly walk in and request for one. Atleast you need a small stand and a shop where you can be carrying out your transactions safely. If you already have a store and a stand, then you are good to go.
Nice talking about POS business in Nigeria! And we are new generation POS equipment maker and supplier, and provide innovation POS system and solutions to the market. And we welcome any merchants to join us for POS distribution in Nigeria or other countries you can reach out. Definitely, Hintel new Innovation POS solution with benefit you and bring more sales growth.
Good to go you say how can one get the money to pay to customer after a transaction is made. maybe a customer withdraw or make a transaction of 100k and all you have both at bank and at hand remaining is 50k how do you balance up can your bank give you extra money and how do you get guide lines on how to operate Pos in paying bills and printing Recharge Card
It’s a nice business
seems like a good thing to venture into. I will definitely look into it
Nice idea, excellent write up
I saw bank commissions , but I didn’t understand what the agent stands to gain.
Major factor is security,
So that you don’t make gain if 1k and loose 10k to invaders.
Pls hw can I apply for a POS machine i bank with GTB. I am interested in.
Hello Temi, just walk straight to the bank, customer care unit and make a request. Or contact Ur account manager, if you have their mobile app, you can locate his or her number or mail address. It doesn’t take the at all.
I want to start ..but don’t know how to go about it….
thanks for this writeup sir, its indeed a motivator to me. i proceded to my bank after reading this post . the problem now is that i was told that the minimum charge is 100naira for every transaction from 1k, but here in my intended business location the charges ranges between 20 and 30naira. how do i go about it?
It is not you the bank will charge, the bank will charge the customers withdrawing directly from their account, while you collect your own charges from your customers.
Nice tip. Kudos to your performance appraisal
This is a very good information. Thanks for sharing
First Bank now charged mandatory 50k for the service including 5k or more for insurance.
Thanks for the update bro