Thinking of starting a Point-of-Sale (POS) business? It’s one of Nigeria’s fastest-growing ventures thanks to the demand for quick cash transactions and digital payments. But before you jump in, there are important things you should understand to set yourself up for success.

Let’s break it down.

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1. Get to Know the Business First

Before you rent a shop or buy a machine, spend some time understanding how the POS business actually works. The worst thing you can do is dive into a business you know nothing about.

Start by asking:

• What services will I offer? (Cash withdrawals, deposits, airtime top-up, bill payments, etc.)
• How does the money move?
• What’s my role as a POS agent?

If you know someone already in the business, spend a day observing them. That one day could save you weeks of confusion and costly mistakes.

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2. You’ll Need Some Startup Capital

You don’t need millions, but you do need something to get started. On average, you’ll need around ₦100,000 to ₦300,000 to cover:

• POS machine acquisition
• Business setup
• Initial cash float
• Miscellaneous expenses

Planning your budget ahead of time gives you peace of mind and a smoother entry into the business.

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3. Register Your Business Name (It’s Worth It)

While you can technically start without a registered business, getting a CAC certificate can be a game changer, especially if you’re in it for the long haul.

Benefits of business registration:

• Builds customer trust and legitimacy
• Preferred by some POS machine providers
• Enables you to open a corporate bank account

Registration is affordable, too — usually between ₦10,000 to ₦15,000 via cac.gov.ng.

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4. Choose the Right Location — It’s Everything

Your location can either make or break your POS business. Here’s what you should look for:

• High foot traffic
• Few (or no) banks and ATMs around
• Safety and visibility

Before picking a spot, take time to observe:

• Are other agents nearby?
• Do people actually use their services?
• Does the area feel secure?

A good location is your goldmine. Don’t compromise on this.

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5. Pick the Right POS Machine

This is your main tool, so be selective.

Where to get POS machines:

• Banks (GTBank, Access Bank, FirstBank, etc.)
• Fintech companies (Opay, Moniepoint, PalmPay, etc.)

Some providers offer free machines if you meet daily transaction targets. Others allow outright purchase. Compare terms, charges, and reliability before making a choice.

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6. Maintain a Healthy Float

Your float is the cash you’ll use to pay customers who withdraw or fund their accounts. A good starting float is ₦50,000 to ₦100,000.

Over time, you’ll learn how to balance your float between physical cash and your digital wallet for seamless operations.

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7. Get a Reliable Smartphone and Internet

Even if your POS machine has a screen, a smartphone is essential for:

• Monitoring transactions
• Recharging your wallet
• Contacting customer support

You’ll also need stable internet—especially if you’re using app-based POS systems like Opay or PalmPay.

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8. Excellent Customer Service Is Key

In this business, trust is your currency. Treat your customers well and they’ll keep coming back.

Here’s how:

• Greet every customer politely—even on bad days.
• Be quick and efficient, especially during busy periods.
• Always print receipts.
• Smile—it’s free and effective.

Happy customers become loyal ones, and loyal customers bring consistent income.

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9. Keep Simple Daily Records

You don’t need to be an accountant, but basic recordkeeping helps you stay in control.

Track:

• How much you earned each day
• Your float balance (cash and digital)
• Any pending or unresolved transactions

It only takes a few minutes daily but can save you from big headaches later.

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Final Thoughts

The POS business is simple but not without its challenges. Taking time to learn, prepare, and execute smartly will give you the edge you need. With the right mindset, tools, and location, your POS venture can become a reliable source of daily income.

Ready to get started?