A recent survey conducted by InfoStride News in Lagos, Abuja, and Port Harcourt reveals the thriving Point of Sale (PoS) business in Nigeria.
PoS agents can earn between N5,000 and N12,000 daily, depending on their location. This burgeoning industry, driven by the simplicity of the technology, has generated approximately 1.5 million jobs, surpassing the remuneration of many degree holders.
Operators highlight the profitability, with some earning as much as N360,000 monthly, exceeding salaries in traditional banking roles. Strategic location selection, high foot traffic areas like markets and universities, and offering additional services such as bill payments and money transfers contribute to success.
Partnerships with other businesses and exceptional customer service are key factors in building a positive reputation. To start a PoS business, obtaining a PoS machine is essential, with costs ranging from N50,000 to N200,000. Some service providers offer free machines, reducing the entry barrier and making it an attractive venture for entrepreneurs.
Effective marketing strategies, overcoming challenges like network issues and fraud, and ensuring compliance with regulations are crucial for success, according to Rose Ubong, a PoS agent.
The PoS business in Nigeria has experienced significant growth since the implementation of the agent banking system by the Central Bank of Nigeria in 2013. As of March 2023, there were 986,252 registered PoS terminals in Nigeria, with the industry recording N1.15 trillion in transactions.
Globally, the PoS market is projected to grow from $80.8 billion in 2018 to $155.6 billion in 2028, indicating significant potential for growth in Nigeria. Moniepoint claims leadership in the market with over 600,000 agents, followed by OPay and Palmpay. Merchants have started to overtake agents in the PoS market, with over 1.3 million merchants on the Moniepoint platform.
The convenience offered by the PoS market in providing various financial services contributes to its continued growth. The affordability and potential for high daily earnings position it as a competitive alternative to traditional banking roles.
Comparatively, the PoS business appears more rewarding than working as a teller in a bank, with daily earnings reported by operators ranging from N7,000 to N12,000. PoS operators cite diligence, strategic location selection, and effective marketing as crucial factors for success.
As the PoS market continues to grow globally and in Nigeria, entrepreneurs entering this space should prioritize customer service, innovation, and compliance to ensure long-term success.
Five bankers interviewed reveal that most banks engage staff on a contract basis to reduce overhead costs. Remuneration for contract tellers ranges from N60,000 to N120,000, while fully engaged staff among commercial banks receive remuneration ranging from N120,000 to N180,000.
The success of the PoS business in Nigeria is evident in the increasing number of registered PoS terminals and the rising value of transactions. The simplicity of PoS technology has opened up opportunities for the general public, making it a viable and lucrative option for entrepreneurs.
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