POS Business: The Definitive 2021 Guide

Last Updated on February 2, 2021 by Henry Ibeleme

POS Business In Nigeria

Starting a POS business has always been a lucrative business anyone can do here in Nigeria. What I like most about this business is that you don’t need millions of naira to start.

Ever since this business started existing, I can’t remember the last time I made a withdrawal using my ATM.

That is because staying in a long queue, especially under the hot sun, doesn’t sound very appealing. But with these POS agents, you no longer need to waste time staying on an ATM line.

This article aims to encourage you to start this lucrative business, especially since there is no much competition yet.

Before I proceed with this definitive guide, 

What Is POS Business?

Point of Sale (POS), also called Point of Purchase (POP), is a device that allows local debit cardholders to make a withdrawal or make payments for products and services.

This machine is mainly used in retail shops, where customers pay for goods or services using their ATM cards.

Once you’ve made payment using this machine, you get a debit alert almost immediately. Also, these agents give you a teller as proof of payment or withdrawal.

Furthermore, you can also use a POS machine to pay some utility bills like electricity, airtime, DSTIV, GOTV, even for payment of school feels.

Have you seen why a POS business is a goldmine here in Nigeria?

You might be asking, how do I start this business? Without wasting time, let’s begin!

1: Business Capital

POS Business Capital

Starting a POS Business doesn’t require millions of money like previously stated. The total cost of everything will round up to #250,000.

Some prospective business persons often find out that raising such capital is hard.

It is not easy, but it demands your sacrifice if you must make it here in Nigeria. Here are some of the ways to raise this capital.

Personal Savings

To raise the needed capital to start this goldmine, you need to discipline yourself and start saving.

If you don’t know how to save, I recommend opening a savings account with any of the banks in Nigeria.

After creating the account, don’t request an ATM card. Save at least #3,000 to #5000 every week, depending on your capability.

Within five months, you will be surprised how much you have saved.

Borrow From Friends And Family

Another way to get the money to start a POS business is through your friends and family.

Most people often tell me that they are not the borrowing type.

The fact is, nobody is! But sometimes you have to bury your shame and get what you want first.

I love this business because, within two months, you have covered the overall cost of starting the business.

So, paying back to your debtors will happen sooner than you expect.

Give them a good pitch and how you will repay within three months. If possible, promise to add interest of #20,000.

That way, they will find it hard to resist your result. Don’t worry, cause the gain you will make in this business will cover everything, including the interest.

Borrow From Lenders

There are lots of money lending platforms in Nigeria. These people offer quick and fast loans with no collateral.

You heard me right, with no collateral! A friend of mine borrowed #50,00 from Paylater to pay back in six months.

The amount you qualify depends on your BVN history. If your account is the type that gets lots of money, it is a signal that you might be able to pay.

There is no excuse not to start this lucrative POS Business. Many people often blame a lack of money, but that is not the case anymore.

Some other lending platforms you should know include:

  • Renmoney
  • Aella Credit
  • Kwikmoney
  • Zedvance
  • FINT Loan, etc.

Step 2. Have A POS Business Shop

open a POS Business shop

The first thing you need to do is to establish a place for this business.

One good thing about this POS business is that you do not need ample space. The fact is, what the majority of these agents use is an MTN umbrella, a plastic chair, and a table.

To ensure you make a lot of sales, I will advise you to choose a location close to a market, or around a junction with lots of traffic.

When you have a shop, the chances of building a significant customer base become possible. 

Pay close attention to this; the location of your business plays a crucial role in your success.

Here are some tips that will help you choose a great location for this thrilling business idea.

Rural Communities

The rural communities are a good business location for this POS business because of the lack of ATM machines.

Most times, these rural dwellers have to walk miles to the nearest ATM stand.

By being in this location, they will have no choice but to patronize you.

Areas Of Heavy Traffic

Crowded ATM machines are often an excellent business location for this kind of business. 

People are most likely to withdraw from you, rather than stay under the hot sun for hours.

Sometimes, some people are in a hurry and can’t afford to waste a minute. By being in such a crowded place, making money becomes easy peasy.

Market Places

Another excellent location for the POS Business in Nigeria is market places. 

I remember the last time I went shopping and exhausted my finance.

Had there been an ATM or POS agent around, I would have made some withdrawal.

But there was none, and I had to waste a transport fare to the bank. 

Market places are great sites since it all deals with transaction.

3. Acquiring The POS Machine

Acquiring The POS Machine

I assume you have a bank account with any of the Nigerian banks. In that case, let your account officer know that you need a POS machine.

Your account officer will give you a POS document and agreement, which you must fill and submit. 

Requirements for obtaining a POS machine

  • Have a sales point
  • You must have a registered business name
  • A passport photograph
  • Money for purchasing the device, or get it on lease
  • Have an account with the bank
  • Business email address
  • Phone Numbers and some other small details.

When going, make sure you have your National ID Card or Voters Card with you. That is to be on a safe side.

If getting this unique device from the bank doesn’t sound appealing, consider getting it from a licensed PTSP.

Cost of POS Machine

POS machine varies in functionality, just like your mobile smartphone.

To start this POS Business, budget about #60,000 to purchase the POS machine. If that sounds like a hard nut to crack, you can get it on lease through your bank.

Getting the POS for FREE

You can get the POS machine from your bank free of charge, without any hidden fees.

However, it comes with some terms and conditions to qualify, which is having a customer base of about 1000 and above.

Another qualifying factor is if you can make sales up to one million nairas per day.

4. POS Business Commission

POS Business Commission

Commission refers to how much you can earn per transaction.

The last time I made a withdrawal, I was charged #200. The same applies to cash deposits and transfers.

Imagine you were able to get about 100 customers in a day, you will be going home with #20,000.

There is no doubt that this business will make you thousands of money in a month. If you’re going to borrow money, please do!

As long as you’re in a location with minimal competition, you will be smiling home every day.

As you do this profitable business, have in mind that commission can change anytime. Always stay updated to information regarding this POS business in Nigeria.

5. Marketing Your POS Business

Marketing Your POS Business

When you begin a business, you need to create awareness.

Start with your friends and families and people within your community.

Word of mouth always works like magic when it comes to exposing your business. 

Here are some of the ways you can market your business and make more money.


In front of your shop, place a banner or signpost telling people to make POS withdrawal and money transfer.

Print Fliers/Business Cards

Hire a good graphic designer to help design flyers and business cards. It is part of marketing, as it helps expose your business.


In your location, you need to be alert. When you see any individual looking around in confusion with an ATM card in hand, that might be a potential customer.

In areas where there is enormous competition, you will find your competitors dragging customers. Sometimes it even leads to a fight.


With a shop and a signpost, it is only about time before everyone knows that your shop is the point for POS transactions.

6. Potential Challenges To POS Business

POS Business cha

Every business comes with its challenges. What makes you an entrepreneur is your ability to scale through, no matter how hard.

Here are some of the problems you might encounter and how to solve them. When you’re able to manage these challenges, you won’t have to join the bandwagon of failed businesses in Nigeria

Power Issues

If you’re in a rural village, access to a power supply can become a problem.

The fact is, I am currently writing the article using my little standby generator.

Since your POS machine needs charging, ensure you have a standby generator. That way, your business will be running without interruption.

Network issues

There was a time I wanted to make a withdrawal, and unfortunately, there was no network.

If there is no network, there isn’t much you can’t do.

It is a challenge, but it doesn’t happen often. So you don’t need to worry about no network for a day.

To ensure you don’t lose any customer due to network, your mobile phone can serve as a backup plan.


If your location is renowned for notorious activities, find a safer site.

Losing your POS machine to thieves is becoming a common occurrence these days.

Always keep your device safe and close to you. Don’t ever, for a second, forget you have such an expensive machine.

8. The Profitability Of POS Business

The Profitability Of POS Business

One of the questions people ask is, “Is it a profitable business?”

The answer is a resounding YES, provided you’re in a good location with effective marketing strategies.

There are POS agents who make #50,000 in a day, and even more.

When you see them hustling under the sun, you might think they make peanut.

Don’t be DECEIVED!

Sometimes if you ask them if it’s profitable, they will discourage you with some facts.

That is because they do not want the competition.

9. Why Start a POS Business?


One apparent reason why you need to start this incredible business is because of the profits.

A lot of Nigerians are making thousands of naira every day, and you too can.

Easy To Run

Unlike some businesses in Nigeria, running a POS business is very easy.

There are no technicalities, nor do you need any special skills.

If you can withdraw money using the ATM, that means you can do this business.

Demand Is High

It is merely a signal to profitability. The higher the demand, the more money can make.

Less Competition

This business is not crowded yet, making it a fantastic opportunity to delve in and make money.

9. Nigerian Banks That Give POS Machine

Nigerian Banks That Give POS Machine
  • Zenith Bank 
  • GTBank
  • Access Bank
  • Ecobank
  • Skye Bank
  • Fidelity Bank
  • First Bank, etc

Each of these banks has a unique method of issuing a POS machine. 

Go to any of the banks, meet your account officer, and he will guide you!

10. How To Succeed In The POS Business

1. Conduct A Feasibility Study

Don’t allow this English word to confuse you!

A feasibility study simply means if the business is do-able. 

Go on market research and discover if there are demand and competition.

Is there a chance you can succeed? That means it’s feasible.

2. Don’t Charge High

If you are going to charge higher than your competitors, you will be out of business before you know it.

Try and stick to the standard price, or even lower if you can afford it.

When you’re able to stand out, you will become the number choice of every potential customer.

Frequently Asked Questions On POS Business In Nigeria

Do I Need A Business Plan?

If you can write a POS business plan, it would be great. But since this business is easy to start and run, you can survive without a plan.

How Much Can I Make From This Business?

Depending on your location and charges, you can make #70,000 to #100,000 every month

Can I Do This Business As A Student?

You can do this business even as a student. The school campus is a great location that offers tons of opportunities.

Over To You!

Starting a POS business in Nigeria is a great idea, right?

That is why I took the time to write this excellent article.

You will not find an article like this, as beautiful and detailed anywhere on the internet.

A lot of entrepreneurs like myself often compile information like this as an eBook and sale.

The only payment I need is for you to subscribe to this blog. 

That way, you will be getting tons of business tips that will help you grow your business.

Before I drop my pen, do you have any questions regarding this business?

Use the comment box, and I’ll reply!

2 thoughts on “POS Business: The Definitive 2021 Guide”

  1. If am starting big am I going to subscribe for all d machines listed above , if yes how much is it going to cost me to have all d POS machine and wat is d benefit of having all d machines available in my location?

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