How to Start up a POS Business in Nigeria Advantage and Disadvantage

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POS means a "Point Of Sale", used to record funds or sales which can take place in a business store or shop, it is a profitable business in Nigeria in which business owners both big and small businesses venture.


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Starting a POS business in Nigeria is a lucrative and more profitable business in a community where banks are few, and ATMs are insufficient around people's locations, making it difficult for individuals to access funds for their daily living.

POS business has a low operating cost system to compare other retail businesses and it can grow rapidly as more customers come.


It consists of both software and hardware system

The hardware comprises:
1. The barcode scanner.
2. The receipt printer
3. The touchscreen computer.


The software includes its Programs.



Types of POS  Machine

  • Mobile POS
  • POS APP
  • Self-service Kiosks.
  • Open source.
  • Touch screen POS.
  • Multichannel POS.
  • Cloud base POS.


Steps to Start a POS Business

(1) Location: location of your business is one of the most important things to consider when deciding to start up a POS Business, you need to find a location where banks are far away and ATM Machines that is where financial activities are far from people.


(2) Startup capital: This will help you to perform a daily transaction, which can be ranging from 100,000 to 300,000 Naria, this amount will enable you to meet up with your customer's demands.


(3) POS Machines: there are two ways you can get the POS device to enable you to start up your POS Business, through banks and other financial agents, the POS machine cost ranges from hundreds to thousands depending on how advanced and strong the POS device is.

How to Make Money in POS Business

  • Try to be available at your stand at all times.
  • Make sure there is an availability of money at your stand. 
  • Avoid high charges.
  • Do not accept huge money for security purposes.


Bank Requirement to Apply for a POS Device

  • Valid means of identification example national ID card, Voter's Card, Driver's license, and international passport.
  • Passport photograph.
  • Bank verification number (BVN).
  • 2 current account Referees.
  • Evidence of business registration (CAC).
  • Start-up fund.
  • Tax Identification number.

Some Banks that Provide a POS Device

  • Union bank. 

  • First bank plc.

  • Zenith bank. 

  • Guaranty trust bank. 

  • Keystone bank. 

  • Diamond Access bank. 

  • Fidelity bank etc.

   Financial Agencies that also give a POS Machine

  • Opay agency.
  • Flutter wave agency.
  • Money points.
  • Kudi agency.
  • First money agency etc.

 Advantages of POS Business

  • It saves time
  • It increases experience in customer service.
  • Helps in having multiple storage systems.
  • Increase sales.
  • Managed by a team.
  • Increased revenue generation.
  • Maintaining the accuracy of data.
  • Employment is being managed well.

Disadvantages of Starting a POS Business

  • Increase the risk of security.
  • Network connection issues.
  • Delay in debited money reversal.
  • Expensive upgrading.
  • Increase in financial exorbitant.
  • Unstable price etc.

 The comment box is readily available for you to make use of in case of questions as you go through the guide


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