Cash withdrawal: All you need to start a POS business in four simple steps

From Monday, January 9, 2023, the Central Bank of Nigeria will implement its cash withdrawal policy.

In a recent defense of the policy to lawmakers, CBN Governor Godwin Emefiele stated that Point of Sale (PoS) agents will be vital.

He told lawmakers that every local government in Nigeria has an agent represented and there are more than 900,000 POS terminals.

Explaining further Emefiele revealed that across the country there are 1.4 million agents nationwide.

Why POS business now

According to Nigeria Inter-Bank Settlement System Plc (NIBSS) there are 191.4 million bank accounts in the country, out of which 133.5 million accounts are active as at December 2021.

The breakdown of bank accounts NIBSS said is 49.8 million current accounts, 120.4 million savings accounts, 8.9 million corporate accounts and 179.2 million individual accounts.

The aforementioned numbers present a huge market coupled with CBN drive for a cashless economy

How to Become a POS Agent

To be part of the POS business is a simple procedure that may be finished in two weeks to a month if you fulfill the host bank's standards.

Startup Capital

To start a business could range from N80-100,000, including money to get the POS machine.

Strategic Location

A strategic location is one with a large number of individuals who will need to make basic financial transactions.

Remote communities, student environments, marketplaces, and areas with few banks and automated teller machines (ATM) points might be ideal sites to start a company.

Get a Shop or Kiosk

This will function as the people's local or nearest financial institution, where they may do simple operations such as withdrawals, payments, bank transfers, and so on.

Your shop or kiosk should be constructed in such a way that it alerts visitors that you run a POS business.

You may do this by placing a small board in front of your business to warn consumers who are seeking a POS terminal from a distance.

Get the POS Machine

This is also one of the most important tasks of the business. According to experts, there are two ways of getting a POS machine, through commercial banks and or other finance agents, BusinessDay reports.

The cost of acquiring the POS machine varies between issuing agents and how strong or advanced the connection runs.

To get a POS machine from a bank, some requirements ought to be met in accordance with the CBN directives.

However, whichever bank you decide to approach, it is to your advantage that you own an active account with them.

Requirements to obtain a POS machine

An active driver's license, or an international passport, is required for launching a POS firm, according to the CBN.

A registered business name, POS location, passport pictures, account number, phone number, business email address, and bank verification number are also required (BVN).

Other important needs are passport photos, a Bank Verification Number (BVN), references to current accounts, and proof of business registration (CAC Certificate)

You will receive the POS equipment after your application is accepted, and you will be able to begin delivering your services to consumers.