Step By Step To Start A POS Business In Nigeria (Updated).

POS business in Nigeria is known as Agent Banking Business, and it involves the withdrawal and transfer of Bank funds, payment of utility bills such as electricity, Cable TV, airtime (recharge card printing), DSTV, GOTV, School fees, Rent, and Tax payments, etc.

POS Business In Nigeria

So, basically, a POS business is an extension of the financial services you would enjoy from a bank, and what you would pay for that service extension is known as “Convenience fee”

POS mean– Point of service.  It is a banking service that allows local debit cardholders make payment for goods and services mostly in a retail location. This service makes use of a POS machine in doing the transactions.

The service is also fast and reliable as it gives instant notification of payment and transactions. This is seen as customers receive alert whenever they do cash transfer with a POS agent. Here we have discuss step by step on how to start POS business in Nigeria, we have also analyst how profitable and why you should dive into this business in the main time.

Step By Step To Start A POS Business In Nigeria:

POS business like any other business, involves proper preparation, market, capital, location and the business environment. If you have been looking for how to establish a POS business or you want to do a mobile ATM cash banking business in Nigeria, then follow the step by step in this post.

Step 1:

Make research

In every business, research is essential. Research is a process of acquiring detailed information of all the areas of business and using such information in maximizing the sales and profit of the business. Such a study helps you determine which service is most profitable or in demand.

For this reason, ensure you acquire the necessary information or knowledge for POS business before diving into it. This purpose will help you determine the opportunities and goals around the business.

Step 2:

Getting a Shop

In any enterprise, the business place is very consequential, due to the fact that it gives your business precision and easy recognition.

One good thing about this business (POS) is that it doesn’t require large space, a vendor or small place is just enough to start the business in.

When locating your POS shop, it’s best to situate it in a business and commercial area, so as to increase patronization and profit.

Step 3:

Good Location

The location is very important in the POS business. You need to go for a business area that will increase in the number of your patronizers which will subsequently increase in your business profit. I prefer it should be an open vendor and should be visible and accessible for customers.

Step 4:


Before venturing into a POS business, you need to have a considerate capital, which should be about N50, 000-N100, 000. This money will cover for the shop, and will be for withdrawal payment and also for miscellaneous such as point of sale purchase.

Step 5:

Get your POS Machine

Of course, there is no POS business if there’s no POS machine. First off, you need to know that a POS machine costs between N50,000 and N100,000, and you can either buy it outright, or acquire it for free from a bank.

If you’re looking to get it for free from a bank, you would have meet their set requirements; these include you making that bank your Host bank, and having an account with them.

The account usually has to be a current account, although some banks would only have you open a savings account.

To know which one of them would cut it for your bank, you should contact the bank’s customer support, or your account officer (if you already have one).

To then proceed with the acquisition of the POS machine form your bank, you would need to fill some documents, which is usually collected form your account officer. Some other banks give you the chance to download the document online,

How Profitable is POS Business in Nigeria

This business is a lucrative one to delve into. This is due to increase in the number of customers who are patronizing the services on a daily basis to carry out their transactions and transfers.

Why people are inclined to using this business is that it reduces bank stress. If you have ever gone to ATM post and queue for a long time extending to hours, it should tell you that this business is thriving well in transactions. People now see it as a good substitute to banks cash withdrawal and transfer.

The POS business is a business that has provided jobs to thousands of people especially young entrepreneurs and business people who venture into it. Another advantage of the POS business is that it requires less capital and will swiftly grow if you put all measures in place to start the business. Below are the steps to take in order to set up a successful POS business that will sequel be profit-driven.

Best Location To Start a POS Business

These are good places where you can establish your POS business in Nigeria;

  • Remote Rural Communities – where there are an iota of banks and financial institutions.
  • Near Schools – University and college campuses will be a good advantage in establishing your POS outlet, because of lot of school transaction students engage.
  • Places Where ATM are always crowded or in places where there are shortages of banks/ATM post.
  • POS business thrives well close to markets and banks because of the much transactions carried out in these places.
  • In populous business premises like supermarkets, malls and large vendors.

Why You Should Start  POS business in Nigeria

POS business has a lot of positive advantages which it gives to the individual business and the patronizes as a whole, they include:

  • Creation of jobs.
  • Helping in Bank decongestion by creating a medium for transfers.
  • Opening business opportunities for entrepreneurs.
  • Reducing bank costs and extending banking services to a wider range for customers.
  • POS services also help to increased account acquisition for the banks.

This and many more are the benefits of POS to businesses and also banks.

How To Get A POS Machine In Nigeria:

You can get POS machine from banks or POS dealers:

1. Zenith Bank

The application form requests the full business name, the business owner account number, the business email address, phone numbers and other minor details, and processing takes 72 hours.  You could email the form to [email protected] and also copy [email protected].

[email protected] is also the contact e-mail address to note if you have any problems.

The business owner will then be required to sign a POS agreement document with the bank.

2. GTBank

In Guaranty Trust Bank, only current account owners qualify to receive the POS machine. Account owners must have held their accounts also for at least six months, just like Zenith Bank.

The form is then mailed to [email protected] or submitted to the account officer. The business owner is also required to sign the agreement form.

3. Polaris Bank

At Polaris Bank, the POS system is being granted with a savings account as far as the relationship officer approved the request. Business owners also only need to fill the application form and the agreement.

POS machines are only issued by the banks below:

  • First Bank,
  • Access Bank,
  • Eco Bank, ,
  • Fidelity Bank etc.

It is important to note that Banks charge you certain percentage for every transaction you make. Hence, POS machines offered by banks are issued out for free in line with the bank’s terms & condition and their mode of operation.

For instance, some banks can only give you when your customer base is from 1,000 and above, and other condition may be if you can sale your products up to one million Naira a day.


In case you don’t prefer the POS system from the bank due to their conditions, you can purchase from POS system dealers. Here are the lists of POS system dealers that sell their POS with a licensed CBN PTSP (Payment Terminal Service Provider).

  • Brinq Africa Payment Solution Ltd
  • Citiserve Nigeria Ltd
  • Computer Warehouse Group
  • Easyfuel Ltd
  • Etop
  • Fidesic Nigeria Ltd
  • Global Accelerex
  • Globasure Technologies Limited
  • Grand Towers Plc
  • Intellifin
  • Interswitch Limited
  • Itex Integrated Services
  • Netop Business System Limited
  • Netplus
  • Paymaster Ltd

Requirements For POS Business In Nigeria

Note that  you can’t start this business without POS machine. There are two ways of getting a POS machine, which is through banks or other financial agencies as listed above. The requirements a business or individual must meet before being given the POS machine are;

  • A registered business name
  • A sales point (i.e. the business location)
  • A passport photograph
  • Account number
  • Business email address and phone numbers
  • And some other essential details.
  • Once all this criteria is met, you will be directed to the bank account officer, and your application will start processing within 72 hours from applying.
  • The POS machine will be delivered to you under 14 days, and you will be required to sign a POS agreement document with the bank before handing over the device to you.

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  1. Matthew Brown October 28, 2020

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