Point-of-sale (PoS) is one of the services that disrupted and had the most impact on Nigeria’s financial sector over the last decade.
Many Nigerian entrepreneurs became millionaires, and many enterprises began to thrive just by offering supplementary banking services.
Now, the service is mainstream and can be considered one of the fastest moving businesses to start in Nigeria.
If you’re interested in starting a POS business and looking for a definitive guide, then this post will help you.
Here’s all you need to start your own POS business in Nigeria this year.
Getting Started
To get started with a POS business, you need to do your business analysis and calculate the cost of starting out.
The average startup capital needed to start a POS business in 2025 is 1million Naira.
This could be lower depending on the scale of the business, but essential expenses includes:
- Rent / Kiosk : 300,000
- Furniture: 100,000
- Branding / Marketing: 100,000
- Working Capital: 500,000
Choice of Mobile Money Agent
Before starting your POS business, you have to decide which mobile money agent platform to use.
There are several mobile money operators that sell POS machine terminals which is an essential tool for offering POS payment services.
Some of them include:
- Moniepoint
- FirstMonie(Firstbank)
- Opay
- Palmpay
- CLOSA (Access bank)
Once you decide which mobile money platform you want to use, you can apply to acquire their POS machine.
Applying for a POS Machine
To apply for a POS machine, you have to contact a POS machine vendor near you or call the mobile money agency for a direct recommendation.
You’ll need a recent photograph, a recent utility bill, and forms of identification and banking IDs such as:
- Government-issued IDs: NIN, Voter’s card, Driver’s license, or International passport
- Bank Verification Number (BVN)
Types of POS Applications
You can apply as either:
- An individual POS agent or
- A business POS agent.
As an individual POS agent, the aforementioned documents will suffice.
However, for a business POS agent, you’ll have to provide business registration documents as obtained from the Corporate Affairs Commission (CAC).
In the case of the latter, the POS machine will bear the business name and not the name of the individual.
Types of POS Machines
There are different types of POS machines with varying costs and financial obligations for your payment service business.
While some banks offer simple terminal-based POS machines, others offer Android-powered POS machines with much more functionalities.
Here are the types of POS machines available to POS agent businesses:
- MiniPOS (mPOS): mobile money functionality which includes performing transactions and checking of balances; lower minimum weekly transaction requirements
- Android POS: All functionalities of mPOS plus features like access to internet and media functions
Strategic Location for your POS Business
To make the most of your resources and have a profitable POS business, you must be strategic in choosing the location of your shop or Kiosk for the POS business.
A good location for a POS business include:
- Busy streets
- Major roads with foot and mobile traffic
- Markets
- Inner cities and areas with no banks or ATMs
Promoting your POS Business
Promoting your POS business is a crucial process in starting and growing a profitable POS payment service.
You have to invest in branding, with signs showing that “POS is Available” in your shop or kiosk.
You could also make a price list for charges per transaction, as well as a list of all the types of POS services you are offering.
Some POS businesses offer other allied services such as:
- Airtime and Data Recharge
- Utility bills for PHCN, DSTV, and Water Corporation
- Bank Account Opening
- Exam Results Tokens
Growing your POS Business
To grow your POS business, you have to create an efficient system that helps you recycle cash for profit.
So, you need to have a good supply of cash in case you need to make a large transaction, and a way to move cash from your shop securely and efficiently.
Once you’ve created this efficient cash flow system, you can then start creating other POS business locations and hiring staff to help you man those locations.
The more POS business locations you can create, the more you can utilize your available cash and make more profit.
FAQs on Starting a Profitable POS Business in Nigeria
Why Should I start a POS Business?
A POS is one of the fastest moving businesses you can start in Nigeria today due to high demand.
It’s also very easy to start up. Even though a standard POS business will cost you over a million Naira to start, you can still start small, with about 100k Naira and a makeshift location, and grow from there.
More so, you can start a POS business as a supplement business to an already existing business such as a supermarket, pharmacy or retail store.
How Much Can You Make From a POS Business?
The average POS business in Nigeria at a good location makes between 5,000 Naira to 30,000 Naira daily.
However, you can scale up your POS business by setting up multiple locations and reusing your available cash capital to earn more profit.
How much do I need to start a POS business in Nigeria?
It depends on the scale of the business.
If you’re adding a POS to an already established B2C business, then you don’t even need a working capital after acquiring your POS machine.
However, for those looking to start a standalone POS business for payment services, you can start with a capital of between 100k Naira and 1 million Naira.
Which bank or company gives the best POS machine in Nigeria?
It depends on the type of POS machine you want.
While some provide POS terminals, others provide Android machines that can function beyond just payment.
Moniepoint, Opay, and Palmpay offer Android POS machines as well as terminals for small POS startups.
Do I need to register my POS business?
Yes. You have to register with the bank or POS-issuing company as the process necessary for acquiring a POS machine.
You can register either as an individual agent business or a Corporate POS business.
How do POS agents make money?
POS agents make money by earning commissions per successful transaction carried out with the POS machine. These transactions include deposits, withdrawals, transfers, and bill payments.
Is POS business still profitable in 2025?
Of course. POS payment services are still thriving everywhere in Nigeria despite the seeming business saturation. There are still many unbanked areas in need of POS and mobile money services, which translates to more opportunity for savvy entrepreneurs to make money.
Can I run a POS business part-time?
Of course. You can hire a POS operator to manage the physical business for you in a shop or kiosk while you track transactions from your mobile money app and control the cash allocation available at every point in time.
What are the risks of POS business?
There are a few challenges which you must beware before setting up your POS business in Nigeria, which includes:
- Security risk in the form of petty theft
- Fraudulent Customers with stolen ATM cards or fake transfers
- Customer disputes owing to failed transactions
