Minimum Amount To Start A POS Business In Nigeria

POS business is a profitable business idea in Nigeria. The business is a very lucrative one among others. Many people have dive into POS Business in 2022, and now people are looking for ways to venture into the business.

This is what brought about the question “what is the minimum amount to start a POS business in 2023?” Interestingly, in this blog post, I’ll explore the minimum amount required to start a POS business right now in 2023.

There are lots of search queries on the internet regarding POS business in Nigeria, and in this article, I’m going to give answers to your questions. However, the major question is “How much money is sufficient to start a POS business in Nigeria?“

Last month, I gave a reply to a comment on my blog; the reader said “is 100k sufficient to start a POS business?” I answered YES. Infact, you can start with less than N100K. Currently, POS business is the most profitable and easiest business to start to start in Nigeria with little startup capital.

POS business is one of the legitimate ways to make money in Nigeria. To maximize your earnings as a POS agent, you need to site your terminal in a geographical location where there is no bank or ATMs. POS business is more profitable in a communities like this. All make sure your shop is by the road side so people can notice you as they do their day to day living.

The present economy situations of Nigeria takes 80% shares in making almost everyone building their own Enterprises. Due to this, you will hardly see a community or street without a POS kiosk. So there are lots of competition in this business.

However, with the kind of competition in the field, POS business still manage to stand out among other businesses with low startup capital. Nevertheless, POS business in Nigeria is still as profitable as before, and you can still start with 100k and make a superb revenue from it.

How to start POS Business in Nigeria with N100,000

The minimum amount to start a POS business in Nigeria and make good profit per month is N100,000. With N100K, you can venture into POS business right now, and you will be making like N13,000 to N15,000 revenue as extra income per month.

Depending on your location and how turn up your customers are, you can make upto N50,000 per month through POS business that you can with N100K. Example of this location is school area. Students are consistently in needs of MONEY. Through that you can make alot of Money in Nigeria without stress.

To start a POS business in Nigeria with N100K, here are factors to consider:

• ROI: First of all, maximize your earning calculation to 15% ROI of your startup capital. For instance, if you’re starting with N100K, the ROI will be N15K.
• Buy a POS Machine: Get a POS Machine lower than N20K. mPOS are actually lower than N15K. Thanks to KudaBank that just introduced SoftPOS; enabling agents to accept card-to-bank payment. The KudaBank SoftPOS is Free for it business account users.
• Site a location: You can manage with a shop owner or site your point in school campus area. However, you’ll need a plastic chair, and an umbrella to get started.
• Build a Brand: Make a low cost banner that describes your brand. Includes all that your POS machine can do in the banner. Services like cardless withdrawal, cash withdrawal, mobile money, cash transfer e.t.c.
• Lastly, ensure that all the materials and tools essential to start your POS business is estimated to N30K in that N100K. After you’ve get all those stuff cleared out, you be left with N70K.

Later on, you can get a loan to support your business if you’re having a large number of customers constantly coming to your terminal to perform transactions. In this case, withdrawing and transferring money within your bank and the POS account will be done constantly also. So getting a loan will really help out.

Although, you’ll be making good profits when that is constantly going on, but bank will get their fees from it when you constantly move money from your account to POS account. So, you can get an overdraft loan or get a loan from the daily thrift in your community.

Depending on the N70K left, you have to get N50K cash at hand and transfer the remaining N20K in your POS account. So, whenever customer comes to perform cash withdrawal, you’ll give out of the N50K cash in your hand.

And it’s cash transfer, money can easily be moved from the POS account to the beneficiary bank account. Cash transaction from customer will also be saved in the POS account.

However, if you have upto N200K to start a POS business in Nigeria, you can go for standards POS machine from banks or fintech companies. These types of POS machine usually cost between N85,000 and N100,000 only. Now, you may be wondering that what’s the difference between the two POS.

Anyways, mPOS is a mobile based POS. It’s connected to smartphone to be able to carry-out transactions successfully. There are some mPOS that doesn’t allow insert of ATM card, but card number. Example of such is Kuda Bank SoftPOS. MPOS also charge agent per transaction made through the machine, but it’s a low fees.

Fintech POS, on the other hand is expensive, but when bought with up to N100K, you are the owner of the POS. You manage and own all transactions you perform on the machine. Unlike mPOS and Free POS, no fintech companies or banks is entitled to your Earnings.

It’s also worth mentioning that there is no fixed price for POS machine in Nigeria. And there are some banks and financial institutions that offer free POS machines in Nigeria, but you must meet up with their requirements before they can give you the terminal. 

Example of these banks and fintech companies are First Bank of Nigeria (FBN) POS, First City Monument Bank (FCMB) POS, United Bank For Africa (UBA) POS, Guarantee Trust Holding (GTH) POS, WEMA Bank POS, Fintech; OPay POS, Palmpay POS, Kudimoney POS, Amali POS e.t.c.

In summary, I recommend you get a good standard POS from banks if you have money to upgrade your business and maximize revenue stream. But if you don’t have enough money to start, you can get a small POS terminal and upgrade your business when you start making huge revenue.

Amount To Start POS Business In Nigeria

The minimum amount required to start a POS business in Nigeria is N100K. If possible you can raise funds for your business, you could start with 200K to 1 million naira. It all depends on your business plan and your financial stability.

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