A POS (Point Of Sale) terminal is a portable device that allows businesses to accept bank card payments for transactions. Initially, this payment solution was introduced to the Nigerian business space by the Central Bank as a way of reducing the volume of cash transactions, as well as managing the risks associated with handling cash. In addition, it also encouraged the spread of electronic payment systems across the board.
The Central Bank of Nigeria appointed the Nigeria Inter-Bank Settlement System (NIBTSS) Plc as the body to regulate the value chain in the following ways:
- Protecting customers paying with their bank cards.
- Protecting business owners from fraudulent “technical experts” who might install malware to steal customers details. All terminals are maintained by the banks/issuing bodies.
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This business involves much liquidity, what this means is that you must have readily available cash to give out. Because customers will come more for withdrawals than fund transfers. The services you will be offering includes;
- Fund Transfers
- Bill payments
- Sale of Recharge cards or Top up to all networks without buying vouchers and
- Most likely Account Opening
To start a POS business, make sure to go through the following steps:
1. Find A Good Location For Your POS Business:
POS business isn’t about just transferring money or doing fund transactions any time of the day; it’s about meeting the required demand of your assumed customers. What does this mean? Rent a good shop at a bus stop. The shop should be miles away from commercial banks and ensure you’re cutting any undue competition along the line.
2. Get a POS Machine:
Most of your customers will come to make withdrawals, so a POS machine is really important. A new POS machine goes for N85,000 – N100,000 only. First Bank offers free POS machines you just need to meet their requirements. To get one visit any First Bank Branch closest to you and make more inquiries about Agent Banking.
3. Get Seen:
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 Withdraw and Fund Transfer”