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How to Start POS Business in Nigeria (Withdrawal/Transfers)

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How to Start POS Business in Nigeria (Withdrawal/Transfers). The services offered include withdrawals, fund transfers, bill payments and sale of recharge cards or top up to all networks without buying vouchers. Check requirements for starting POS business and how profitable it is below.

How to Start POS Business in Nigeria

The point of sale (POS) or point of purchase (POP) is the time and place where a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice for the customer (which may be a cash register printout), and indicates the options for the customer to make payment. It is also the point at which a customer makes a payment to the merchant in exchange for goods or after provision of a service. After receiving payment, the merchant may issue a receipt for the transaction, which is usually printed but can also be dispensed with or sent electronically.

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Can a POS transaction be traced?

1 Answer. They can always trace an online transaction to a card number if there is a card in the slot, also they can always trace the transaction to the phone line/network connection the ATM/pos terminal uses. Merchant banks are pretty specific in that they log everything they can. Several times usually.

What are POS in business?

Point of sale (POS), a critical piece of a point of purchase, refers to the place where a customer executes the payment for goods or services and where sales taxes may become payable.

About POS

POS business is a cash minting business which has silently been going on without much awareness but now gaining serious popularity. This is due to increase in the number of consumers who are spreading the news to others who want a life of convenience and ease.

If you have ever gone to ATM post and queue under hot sun or under showers it should tell you that this business will thrive well any day any time. People now have a good substitute to banks cash withdrawal and transfer through pos. Account opening and BVN registration.

Pos business is very lucrative. It is a known fact that trading on money or money related venture is very profitable. This is a business that can provide jobs to thousands of people especially the youths. That is why this post is coming up in other to encourage people to go into this viable business.


  • How to start pos business
  • Pos transaction business in Nigeria
  • How profitable is pos business
  • Pos transaction charges
  • How much is needed to start pos business
  • Where to get pos machine


If you have been looking for opportunity to earn money through POS or you want to do a MOBILE ATM CASH BANKING business in Nigeria an opportunity has presented itself A step by step detailed guide is outlined in this post. So many small businesses are now using POS machines for their transactions. Example shops, supermarkets, hair dressing saloon, boutique etc.

For those who want to go into pos business in Nigeria as their main business. Here is the criteria:


You have to get a shop this is very important because as a business there must be a place to establish it. One good thing about Pos business is that it doesn’t require large space, a small place is just enough. You can rent it or use you house for transaction.

If you  are a shop owner you have to increase your customers base; because it will put you at an advantage if you are getting your pos machine from bank.


Where you position your pos business is very important because increase in the number of patronizers means increase in profit. It should be a place that is visible and accessible. Decorate your shop with banners and materials that will be given to you by your pos mobile agents. Make people know what your shop is about.


You need about #50,000 at hand for withdrawal payment and money also for miscellaneous such as point of sale purchase if need be. Another thing you need money for is shop renting.


There are two ways of getting pos machine, through:

  • Banks
  • Agency banks


POS (point of sale) is also called point of purchase (POP) it is a device that allows local debit cardholders make payment for goods and services mostly in a retail location. Pos machine is a very good automated product because it reduces the stress of carrying cash around, transacting directly with cash etc.  It also gives instant notification/confirmation of goods and services payment. That is why you receive alert whenever you do cash withdrawal or transfer with pos agent. Pos business has its many challenges and  Problems which you must know before going into the business.

See Also: List of Nigerian Banks with Branches in USA

POS accepts debit/credit cards the same way ATM does. Buyers of goods can pay directly to a sellers account without using cash.
It is not just for payment only but can be customized for bill payment such as airtime (recharge card printing), DSTV, GOTV,. POS can also be customized to collect School fees, rent, tax, donations etc.


  • Have a sales point
  • Possess a registered business name
  • A passport photograph
  • Get it on lease or pay cash


  • Have a business name
  • Account number
  • Business email address
  • Phone numbers
  • And some other small details.

You will be directed to the account officer.  Who will start processing the documents within 72 hours. Under 14 days you will receive the POS. But you will be required to sign a POS agreement document with the bank.


In case you don’t want to collect the pos machine from bank, you can purchase from Companies who are licensed to sell them. They are registered aggregator with CBN licensed PTSP (issuers of pos terminal in Nigeria. You stand to gain a lot from possessing your own pos machine.


Pos machine varies in prices depending on the agency company you are buying from and the type of point of sales machine in question. The prices of the machines are coming down from what it used to be. We now have some machines that cost #45,000, #65,000, #75,000 etc. The difference here is just like having 2G, 3G and 4G so the higher the money, the better the service.

See Also: How To Transfer Airtime To Bank Account


  • Zenith Bank,
  • First Bank,
  • Access Bank,
  • Ecobank,
  • Skye Bank,
  • Fidelity
  • Diamond bank etc. Each bank has its own mode of operation you just have to go to them one on one to get details on what is required.

Banks give out the POS machines free. I mean you don’t have to pay anything, however, terms and conditions apply. For instance, some banks can only give you when your customer base is from 1,000 and above. Another condition is if  you can sale your products up to one million Naira a day. Banks charge you certain percentage for every transaction you perform.


Micro Finance bank: some microfinance banks like Fortis Mobile gives out pos machines. But you have to register as agent mobile money company.

INTERSWITCH: Interswitch is instant debit and credit but it does not accept visa cards for now.

There are many mobile money operators example; Quickteller, Paga, Branpos, Pocketmonie, Firstmonie, Opay, Paycentre, Nexgo Pos, citiserve etc.



Before now it used to be:

  • Cash withdrawal – #150
  • Cash deposits #150
  • Transfers – #150
  • The #150 commission you make on every transaction is the same for all banks.

It is now 1% deduction across board on every transaction, the fee is 0.75% while Maximum Charge on Pos (CAP) that used to be #2,000 is now #1,200.

NOTE: Commission can be changed at anytime find out the current charges from your agent or bank.


  • Etisalat 3.5%
  • MTN 3.0%
  • AIRTEL 4.0%
  • Globacom 6.0%


  • MTN 3%
    Globacom 4%
    Etisalat 4.5%
    Airtel 4%
    Smile 3%
    Spectranet 4%


  • DSTV 2%
  • TSTV 2%
  • GOTV 2%
  • PHCH 2%
  • Same goes to any other company used.


  • WAEC 6%
  • NECO 6%
  • JAMB 6%

See Also: Top 10 Best Banks For Savings Account In Nigeria


  1. Rural Communities: you will agree with me that rural communities have less number of banks or financial institutions as such establishing a POS business will be a great success. Many parents that want to send money to their kids for school fees, upkeep and other commitments will gladly embrace this business. Others who travel downtown to carry out financial transaction will be relief.
  2. Places Where ATM are always crowded or in places where there are shortages of banks/ATM post. Human beings are always in a hurry as such not everyone likes queuing up in ATM post if they see alternative they will gladly accept not minding the charges.
  3. I discovered that the business thrives well close to markets and banks. Sometimes bank ATM will show insufficient fund at that time many people who wants to make use of money will rush you.
  4. In your business premises especially if you handle a large amount of money or have a good number of clients.


  1. Do not collect high charges. You can put #300 for a ten thousand Naira transaction that is 3% on every monetary transaction.
    Always be available at all cost in your location because if you keep absenting yourself clients will think that you are not serious.
  2. since it involves money you have to position it in a place that is safe. So that hoodlums will not use you shine by robbing you.
  3. Don’t accept large amounts for security reasons except you are well secured because if some bad guys know that you handle large amount, they may strike.


It is more ideal for you to buy your own pos machine than get the free version. When they say free it is not completely free because you will still part with some money to get the pos. It is called mpos so it is not a machine per say but something you can sync into your phone.


To get free pos machine there are many conditions that follows.

  1. You must prove that your business can do a #100,000 transaction every day. It is mostly given to people who are already into or have done agency banking before and live in a high brow traffic areas.
  2. The money you pay for registration #15,000 or more is enough to add more money and buy for yourself. They call it agent registration and it is compulsory.
  3. You are the one to pay transportation fare for physical visitation of your location or the address where terminal will be used. And also for branding materials, courier for the pos delivery. Let’s assume the whole of these cost #20,000. Add this to the registration fee what does that tell you?
  4. It takes 30 days before you get the free mobile pos and you have to sync it into your smart phone before you can transact with it.
  5. As an agent you will not charge extra for utility bill, airtime recharge but only from the commission you charge user


  • It works independently without smart phone. You get instant value of amount transacted into your wallet. From your wallet you make transfer to your bank.
  • You get your pos machine within 3 working days after payment.
  • No target
  • You earn extra commission on cable TV, utility bills, airtime recharge. Also you earn from the commission you charge users.


  1. Power or source of light. Some rural communities don’t have steady light while others don’t have it at all.  So you will have to spend more on fuel to power your generator after purchasing one. In other to keep your business running and your customers smiling. The business involves the use of a machine and has to be powered every time.
  2. Network issues: a friend of mine told me how she got to one school; about commencing transactions there was no network. She battled for a while at the end she excused herself. And told the proprietress that she will be back when the network comes up. Anyway, there is a way you can use your phone to do the business so you can avoid embarrassment. I mean alongside with the machine
  3. Some people say phone transfer is better than pos but big Companies with many staff needs pos. Phone transfer is risky and very frustrating. Network is the major challenge. Some alerts take hours to come and sometimes you get a reversal of the money a customer has already confirmed you posted.
  4. Theft/robbery: it involves money-making, there is the fear of possible attack because you are exposed to it. To keep security means spending money.
  5. Inability to control the crowd that gathers around you.

See Also: Bankers Salary In Nigeria (What You Need To Know)


  • There is good profit in POS business because it involves rendering many services. With pos you can print and sell recharge cards. Only this one alone provides heavy gain not to talk of when you calculate other services rendered in a day.
  • The money you make from commissions; banks and cable is enough to make you financially free. The bank charges you receive is not directly from you but your customers. So you have nothing to lose but much to gain. But you have to charge according to bank commission or it should guide your charges.
  • Assuming you transacted with 40 people a day and your commission is #150 each that will give you #6,000. In a month you would have made #150,000 it could be more. Remember there are other services like recharge card sales, cable and Education voucher sales to make money from.


  1. As said it is lucrative. The demand for all the services is high meaning plenty overturn for you which guarantees a huge profit.
  2. It is not a complex business, the processes involved are straightforward. Meaning the business can be done by anybody.
  3. You would have rendered help to people who spend so much money and time to get to where they can receive such services
  4. The demand for the service is high meaning more money
  5. It is sustainable because the consumption of these services will always be needed
  6. POS business is not yet crowded


It depends on the services you want to be rendering and the kind of pos you want to acquire. If you are getting it from bank you will need from #100,000 and above for transaction. That is outside the shop. But if you are buying from agency company then you need #300,000. So #100,000 can take care of the POS machine while #200,000 will be for money payment for withdrawal. Remember you must have cash in your bank account for transfers.

You can start small then when the demand for your services increase you also increase the capacity of your capital.

For those who collected the machines from banks and are using it for their business transactions such as supermarkets, they have nothing to pay but meet-up with laid down procedures.

See Also: List Of All Banks In Nigeria And Their Websites


The business sales itself, create awareness or let people know your business. Next time they will be the ones coming to do business with you.
You can approach institutions, religious bodies, market etc and make a deal with them.

Print fliers and share them around your neighbourhood.


Start pos business and be making more than #5,000 daily; and more than #200,000 monthly anywhere you are. It is a nice business idea you should think of doing as an entrepreneur. You can do it as a side hustle. With pos you don’t need any software for recharge card printing; rather you will be printing directly.


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