POS business in Nigeria


Interview session with Mr. John Chukwunonso, a POS merchant; on how to start and run a profitable POS business in Nigeria

POS business in Nigeria is one of the leading businesses you can venture into with little experience as well as capital requirement, the advent of agency banking has defined a new ground from the traditional banking.

Towards this trend, the Central bank of Nigeria seeks to enhance financial inclusion where everyone as well as the rural poor who are either under banked or unbanked can have access to financial services with relative ease.

POS business in Nigeria has grown in leap and bounds, people can access most financial services without visiting the banks which makes for a better service delivery and seamless experience at large.

It has been my knack to bring to you a nibble perspective in business ideas by going out of my way to interview experienced experts in their various fields of endeavors who have succeeded in running their business.

The essence is to provide you with the best spoke first-hand experience from experts who didn’t just have the experience, they as well make real money from running POS business in Nigeria.

If you’ve been nurturing an intention to venture into POS business, however, do not have the right lead, experience and forte to get started, the interview session you are about to read will provide every requisite detail that’ll enhance your success in this business.

Why start a POS business?

  • It’s profitable
  • Less capital requirement
  • You create employment for yourself and for others at large
  • You will be fulfilled

In this interview you will read directly from Mr. John Chukwunonso, a POS merchant who has explored the length, width and breadth of this business as well doing just fine for himself.

Good day bro, it’s nice to meet you. Kindly tell us about yourself, please?

Good day, my name is Mr. John Chukwunonso. I run POS business, I based at Nnewi Anambra state, a graduate of Business Administration.

How did you get the idea of POS business, were you introduced by someone or something?

I was introduced into this business by my elder sister who also measures as a banker with one of the leading commercial banks in Nigeria.

At first I declined to give it a chance, however, she prevailed on me to give it a shot probably back out if it doesn’t worth the time.

Barely one month into the business, I couldn’t thank her enough to have prevailed on me to venture into this business.

Read also: How to become an Opay agent and make money from it in 2020

To be certain, I was wasting my time in my previous business, to God be the glory I can say something quite unique and different today, in brief, I’m singing a new song today.

Funding has been a major factor in starting a new business, is that applicable to POS business, if yes kindly tell us how much money one should have to start this business?

Funding is actually a factor like you pointed out, however, there’s no benchmark to an amount you can start with.

You can venture into this business with as little as N50, 000 or N100,000 as the case may be depending on your location.

Though the higher the better, if you have N1,000,000 at your disposal, make certain you’ll be out in full force since you’ll have the necessary liquidity to execute transactions as they come, do your business and make a lot of profit.

Only banks provide POS machines in the past, has anything changed now, are their Fintech companies that provide POS machines, mention some if any please?

We have about 4 or 5 private companies that issue out POS machines now, we have the Opay, MoMo, Kuda, Money point, etc., however, the leading companies are “OPay, money point, Bagzi and Pega.”

Which bank has the best POS from your experience considering litmus factors like; the network uptime, charges, etc.?

Let me point out that before now, bank POS runs in a form that on treating any transaction the customer is being charged, however, that has changed now. Most banks now charge the merchants except Access CLOSA and Union bank.

Currently, considering the best in network uptime and moderate charges, I’ll go for Union bank, though I have First bank, Polaris bank, as well as Zenith, but the best for me is Union bank.

Which private companies have the best POS machines, give reasons for mentioning any, please?

In this case I’ll advise you go for Opay and Money point.

Reason; Opay is the best given they have a competitive charge. You can get to their platinum level having reached a transaction count, at this point you’ll receive a cash back for treating transactions.

They provide merchants with affordable loans at competitive interest rates.

Read also: How to become Access bank POS agent/CLOSA agent/ Mobile money

Money point gives cash back too but only on deposits though little.

What is cash back, please?

Cash back is a token given to the merchant for consummating transactions, it comes as a reward. Usually when you treat a certain transaction you are paid certain amount from the charge.

What does an aspiring merchant needs to start a POS business in Nigeria, please?

Before you start this business first off, source for the POS either via the bank or through private companies.

Source and make your capital available, liquidity is requisite in this business. You need money to stay in business and make more money.

You need to get a location/either a shop or a location with good traffic to site your business.

The bank considers location to determine your suitability for this business as that defines if you’ll be a viable or another dormant agent.

This business is getting competitive, the banks want to make certain they are recruiting an agent that will put their machines into viable use.

Do banks and companies assist their agents with loans/overdraft of any kind?

Most banks/companies provide loans for their agents; First bank, Union bank, Opay, Zenith bank, as well as Money point all provide loans and overdrafts to push their agents to the next limit when they are in need of money.

Are merchants required to meet certain qualifications to access these loans/overdrafts?

Yes, merchants are required to meet certain transaction counts to access overdrafts. For banks you have to be an existing merchant for at least 3 months performing transactions daily.

As well as other companies require that merchants should have been in business for at least 3 months and above with convincing transaction counts to access loans/overdrafts.

What is your definition of a good location, what are some challenges customers do have while trying to use the POS sometimes?

A good location is a spot where a merchant can have a number of customers visiting his/her shop consummating transactions in their numbers.

A good location should have quality traffic where customers are looking to access financial services being offered by the merchant/agent banker.

A good location should have a relative security to mitigate against theft and buglers. We are into money business you know, need not be told that we are soft targets for criminals who are looking to make fast money they didn’t work for.

The challenges from the customer’s end is usually bad network/network downtime from their bank.

A customer may be debited without transaction being approved while the agent is not credited with value, in this case you are not required to part with money though the customer has every right to feel bad, but will have to contact his/her bank as a card issuer to get this resolved.

Additionally, we have the issue of pricing since there’s no union in this business. Customers may feel a deal in challenge when merchants charge differently for their service.

How do the merchants make money in this business?

Primarily we make our own money by charging customers for withdrawal and deposits, the bank in the other end pay us from aggregate transactions, charges, commissions earned monthly.

If you operate in a busy location, these funds form a huge pull by the end of the month.

Read also: Z-Money – How to become a zenith bank POS agent

Thank you so kindly for granting this interview. Do you have any advice for aspiring POS merchants?

My advice for people looking to venture into this business is; you are about to venture into a business where you are certain to make profits daily provided you have the capital to run the business.

I know a lot of friends who have made it in this business just like myself. We started with token of a capital but now count in millions.

Get a bank POS as a beginner it’s cheaper to meddle with your cash pool, do have a successful outing.

Thank you so kindly Mr. John Chukwunonso, it has been nice having you hear and do have yourself a wonderful day.


You just read from the horses ink rather, POS business in Nigeria is worth giving a shot, you can make a kill from it so long you follow the lead from the expert himself.

Are there questions you’d wished featured in this interview, it’s your turn now, let’s get talking in the comment section.

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