How to Start a Profitable POS Business in Nigeria (2025 Guide)

Looking to start a POS business in Nigeria and turn it into a money-making venture? You’re on the right page.

With the rising demand for fast and accessible financial services—especially in under-banked and rural areas—starting a POS business has become one of the most profitable small business ideas in Nigeria today. And the good news? It’s not just for the banks or fintech companies anymore. Anyone with a little capital and the right knowledge can start.

In this guide, we’ll walk you through:

• What a POS business is all about
• How much you need to start in 2025
• Where to get a POS machine
• Step-by-step guide to getting started
• Tips to stay profitable and grow fast

Let’s dive in.

What’s POS Business All About?

A POS business, which means Point of Sale business, is a mobile banking service in Nigeria. It allows agents, also known as POS operators, to help people with basic financial transactions.

They assist customers in withdrawing cash and sending money to others.

They also handle bill payments like DSTV, electricity (PHCN), and other utility services.

In addition, agents sell airtime and mobile data to customers.

Sometimes, depending on the provider, they can even help people open bank accounts.

Because these services are fast and easy to access, POS businesses are popular in places where banks are far or unreliable.

You earn money through transaction commissions paid by banks or fintechs, and sometimes from extra service charges paid by customers.

 Is POS Business Still Profitable?

POS business in Nigeria is still profitable—and here’s why:

• Cashless policy push:With the continued cashless economy drive by CBN, POS agents have become mini banks in many communities.
• Rural demand:Many rural areas still lack banking infrastructure.
• Low startup cost:You can start with as little as ₦50,000 to ₦150,000.
• Daily cash flow:POS business brings daily income from multiple transactions.

Pro tip: Profit depends heavily on location, customer volume, and transaction speed.

 How Much Does It Cost to Start a POS Business in Nigeria?

Starting cost varies depending on location and your POS machine provider.

Total estimate: ₦70,000 – ₦150,000

Some fintechs offer free POS terminals if you meet their transaction targets.

 Where to Get a POS Machine in Nigeria

You can get a POS machine from:

 Commercial Banks

• Access Bank
• First Bank (Firstmonie)
• Zenith Bank
• UBA, GTBank, etc.

 Fintech Companies (Most Popular in 2025)

Note: These charges per transaction are no longer obtainable due new CBN rules/polices on mobile money operators.

Want help deciding on POS machine to get for your business? Check out our guide on best fintech POS machines in Nigeria 2025. we can assist you in developing a winning POS business plan — tailored to attract investors. Contact us today — let’s bring your business idea to life.

 Step-by-Step Guide to Start a Profitable POS Business in Nigeria

Conduct Market Survey

Before you rush into getting a POS machine and renting a space, the first and most important step is to study the environment — yes, we’re talking about a market survey.

You don’t want to set up your POS business in an area where banks and ATMs are too many, or where so many agents are struggling for few customers. That’s a quick way to seek your shutdown in few months of business. So, take time to walk around your neighborhood, nearby communities, or local markets to see what’s lacking and where you can fill a gap.

 What to Look Out for:

• Are there banks or functional ATMs nearby?If yes, do people still queue for long hours? That could mean a POS agent is still needed.
• Is the area densely populated?More people = more potential customers.
• Are there other POS agents around?If so, how busy are they? If you notice they’re overwhelmed or have regular queues, it’s a good sign there’s room for one more.
• Do the people in the area mostly deal in cash?Rural and semi-urban areas, markets, or transport hubs (like parks and bus stops) still rely heavily on cash.

 Target High Foot Traffic Areas

Your best bet is to choose a spot where people are constantly passing by or gathering.

Some ideal places include:

• Local markets– Traders and buyers often need quick cash and transfer services.
• Motor parks and bus stops– Passengers may want to withdraw or send money quickly.
• University/college campuses– Students often use POS for school fees, transfers, and airtime.
• Residential estates or hostels– People always need nearby financial services.
• Junctions or busy streets– If traffic and activity are high, there’s demand.

Don’t just guess—talk to people! Ask locals if they’d find a nearby POS useful. Observe how they currently handle withdrawals and transfers. That little extra effort can make the difference between a struggling POS business and a thriving one.

Once you’ve identified a good location, you’re ready for Step 2—registering as a POS agent.

Register as a POS Agent

Once you’ve found the right location, the next step is to officially become a POS agent with a licensed provider. This means partnering with a fintech company or a bank that supplies POS terminals and gives you access to their transaction platform.

You can’t just buy a POS machine on the street and start collecting money. You need to be registered and verified—this keeps things secure and ensures you’re doing business legally and transparently.

 Choose Your Provider

Start by selecting a trusted POS provider. You have two major options:

• Banks like First Bank (Firstmonie), Access Bank, Zenith, UBA, and GTBank.
• Fintech companies like Moniepoint, Opay, Palmpay, Kuda, Baxi, or Nomba (formerly Kudi).

Each provider has its own registration process, machine cost (some offer it free), and commission rates, so it’s smart to compare a few before deciding.

 What you’ll need to register

To apply as a POS agent, you’ll be asked to submit some basic documents. These usually include:

• A valid means of identification (Voter’s card, National ID, Driver’s license, or international passport)
• A passport photograph
• Utility bill (e.g., electricity or water bill not older than 3 months — used to verify your address)
• Your Bank Verification Number (BVN)
• CAC registration certificate (optional but adds credibility)

If you’re registering online, you’ll need clear, scanned copies or photos of these documents.

 How to Apply

If you make up your mind to use a particular POS machine for your POS business, you can ask someone using the same POS machine for his/her aggregator’s phone number. Contact the POS aggregator and request for a new POS machine.

Most fintech providers have online registration portals where you can apply within minutes.

1. Visit the official website of your chosen provider.
2. Look for the option that says something like “Become an Agent” or “Agent Registration”.
3. Fill out the application form and upload the required documents.
4. Submit and wait for approval.

Approval Time: For most providers, it takes 1 to 5 working days to review your application. Some may call or visit your location to verify before issuing the POS machine.

 After Approval, What’s next?

Once approved, the provider will either:

• Deliver the POS machine to you, or
• Ask you to pick it up at one of their nearest offices or distribution points.

At this point, you’ll be trained briefly (sometimes virtually) on how to use the machine, handle transactions, and contact customer support if needed.

 Quick Tip: To increase your chances of fast approval, make sure your documents are clear and up-to-date, and your contact information is correct. Some agents also get priority if they register their business with CAC and have a good business location.

Next up? It’s time to get your POS machine and start making money!

 Get a POS Machine

Once your registration is complete and your documents have been verified, your POS provider will either deliver the machine to your location or invite you to pick it up from one of their offices or designated centers near you.

Some fintech companies—like Moniepoint, Opay, and Palmpay—now have fast delivery systems, especially in major cities like Lagos, Abuja, Port Harcourt, Enugu, and Kano. If you live in a less urban area, you might need to go to their nearest collection point.

 What You’ll Receive

Your POS starter kit usually includes:

• A POS terminal/device
• A user manual(optional)
• Roll of POS printing paper
• Instructions for activating your account
• Customer support contact or WhatsApp line

Before you leave (or accept delivery) check that the machine is working properly, the screen is intact, and all accessories are complete.

 Activate and Test Your POS

After receiving your POS terminal, the next important task is to activate it.

Most providers will:

• Send you a login PIN or activation code
• Guide you through a first-time setup
• Ask you to perform a test transaction (e.g., airtime top-up or cash withdrawal)

This helps to confirm that the machine is working, the network is stable, and your wallet/account is properly connected.

 Notes:

• Always test your machine before launching your business.You don’t want to open shop only to discover that the device isn’t working.
• Check network coverage in your area.Some POS providers have stronger networks in certain locations. If your machine is constantly offline, you’ll lose customers.
• Ask for customer support contacts.In case of network issues, failed transactions, or chargebacks, it’s important to reach help fast.

Once your terminal is active and transactions are going through smoothly, you’re ready for business! Most fintech companies like Moniepoint have Whatsapp group for each city or locality they are operating business, request that they add you to their Whatsapp group.

Fund Your Wallet/Account

Now that your POS machine is up and running, the next thing you need is money in your wallet or account. We’re not talking about your personal bank account. We’re talking about your POS transaction account, which is the digital account linked to your POS terminal.

This is what you’ll use to perform transactions like cash withdrawals, transfers, airtime sales, and bill payments. Without funds in your wallet or account, you can’t serve customers—and that means no income for you.

 How Much Should You Start With?

The amount you will start with depends on how much you have. But to begin smoothly, it’s advisable to start with at least ₦50,000 to ₦100,000 in your transaction wallet. This gives you enough working capital to:

• Handle multiple cash withdrawals
• Process transfers
• Pay billsor sell airtime without interruptions

Of course, if you can afford more, go ahead and load it up—especially if you’re in a high-traffic location where customers come in frequently.

Remember: your wallet is like your store’s inventory. If it’s empty, you can’t sell anything.

 Keep It Topped Up Regularly

As your business grows and transaction volume increases, you’ll need to monitor and top up your wallet regularly. Running out of funds in the middle of a busy day can frustrate customers and make them switch to another POS agent nearby.

Here are a few smart tips:

• Set a daily or weekly funding targetbased on your average transactions.
• Create a separate business accountto manage POS capital so you don’t mix it with personal spending.
• Use mobile banking or direct bank transferto fund your POS wallet quickly.
• For some fintechs like Moniepoint and Opay, you can fund directly through their agent apps or dashboards.

  Note:

Some providers charge a small fee when you fund your wallet, so always check the terms. And try not to fund only when you’re low—it’s better to stay ahead and keep your business running without pauses.

Once your wallet is funded and ready, you’re all set to launch your POS business officially and start attending to customers

Set Up Your Business Spot

Now that your wallet is funded and your POS machine is working, it’s time to set up where you’ll actually operate from—your business spot. This is where customers will find you, so it needs to be strategic, visible, and welcoming.

You don’t have to start big or rent an expensive shop. Many successful POS agents in Nigeria operate from a simple kiosk, wooden stall, umbrella stand, or even a shaded corner near a busy road. What matters most is that your space is easy to locate, safe, and accessible.

 Choose the Right Spot for Visibility

Depending on your budget and location, you can:

• Rent a small kioskor wooden stall near a market, street junction, or bus stop.
• Use a large umbrella and a plastic table/chair(very common for those just starting).
• Share space in front of an existing shop (just ensure you have the owner’s permission).

The key is to choose a location with steady foot traffic—you want to be seen by as many people as possible throughout the day.

 Brand Your Business

Even if you’re operating from an umbrella or small kiosk, make sure it looks like a business.

Here’s how to do that:

• Put up a banner or signboardthat clearly says something like:

“POS Available Here – Withdraw, Transfer, Buy Airtime, Pay Bills”

• Use bright, bold colorsto attract attention (yellow, red, blue work well).
• If possible, include the name of your fintech provider(e.g., Opay, Moniepoint) to build trust.
• Keep your space neat and organized—nobody wants to do financial transactions in a messy corner.

Pro tip: Use reflective tape or lighting if you plan to operate into the evening.

 Why This Step Matters

Many POS agents lose customers simply because they’re not visible enough. If people can’t tell what you offer from a distance, they’ll walk past. A branded, clean, and clearly marked POS spot gives you credibility and helps new customers find you easily.

Once your business spot is ready, it’s time to start your day-to-day operations—and that’s where the real hustle begins!

Absolutely! Let’s wrap up your guide with a powerful final step that ties everything together and shows your readers how to grow and sustain a profitable POS business in Nigeria.

Grow and Manage Your POS Business for Long-Term Profit

Starting a POS business is one thing—growing it and keeping it profitable in the long run is another. The truth is, a lot of people enter the POS space, but only those who treat it like a real business enjoy steady income, loyal customers, and long-term success.

Here’s how to manage and grow your POS business beyond just daily transactions.

1. Track Your Earnings and Expenses

It’s easy to lose track of your money if you’re just collecting and spending daily. To build a serious business:

• Keep a daily transaction logbookor use apps to track inflows and outflows.
• Separate your business capitalfrom your personal money.
• Calculate your daily profitso you know how much you’re really making.

This will help you see where your money is going and where to improve.

2. Build Good Customer Relationships

People are more likely to return if they trust you and feel respected. Always:

• Be polite, honest, and professional
• Help resolve failed transactions quickly
• Offer quick services, especially during rush hours
• Give small extras when you can (like ₦10 airtime as bonus for loyal customers)

Word-of-mouth travels fast—especially when you treat people well.

3. Expand when you’re ready

Once you’ve mastered one location, you can think about expanding:

• Open a second POS spotin another busy area
• Train someone (a relative or trusted person) to manage it
• Register your business with CAC for credibility and access to funding

Some top agents now run 3 to 5 locations, each bringing in steady daily profit.

4. Stay Updated and Switch When Needed

If your POS provider starts having too many network issues, poor customer service, or bad commission rates, don’t hesitate to explore other options. The fintech space is evolving, and new players often offer better deals.

Stay active in POS agent WhatsApp or Telegram groups, where you can learn from others and hear about changes early.

5. Treat it like a Real Business

The biggest difference between those who succeed and those who quit early is this: treating the POS business like a serious hustle.

• Show up every day, especially during peak periods (e.g., salary week, market days)
• Keep your space neat and professional
• Learn basic customer service
• Keep backup data or internet solutions for poor network days

How Much Can You Make from POS Business?

Earnings depend on daily transaction volume, type of service offered and your commission rate

Example Daily Earnings:

Estimated Daily Profit = ₦4,300 × 25 days = ₦107,500/month

Top POS agents in Nigeria make ₦100k to ₦300k per month

 Common Mistakes to Avoid

Some common mistake you should avoid as a POS agent in Nigeria include:

• Operating in overcrowded locations
• Using unreliable POS networks
• Not separating business capital from profit
• Charging excessive customer fees
• Ignoring customer care and dispute resolution

 Tips to Make Your POS Business More Profitable

The following are tips to make your POS business in Nigeria more profitable:

• Offer multiple services: bills, airtime, transfers, withdrawals
• Use a stable POS providerwith fast network uptime
• Keep proper recordsto track your earnings and cash flow
• Promote your locationonline and offline
• Expand to mobile POSor multiple locations as profits grow

Do I Need to Register my POS Business with CAC?

While CAC registration is not mandatory, it’s highly recommended if:

• You want to grow into a larger financial service provider
• You plan to open multiple branches
• You want to open a business bank account

CAC-registered agents are more trusted and sometimes get better fintech offers.

Conclusion

Starting a POS business in Nigeria is still one of the fastest ways to generate daily income, especially with the ongoing push for cashless transactions. But it’s not just plug-and-play—you need the right setup, good location, consistency, and business sense to really make it profitable.

If you follow the steps outlined in this guide—from conducting a market survey to managing your business smartly—you’ll be well on your way to building a successful POS business that pays you daily, weekly, and monthly.

Related Articles you’ll Love:

• Where to get a POS machine in Nigeria
• Best Fintech POS Providers in Nigeria – Comparison Guide

Bonus: Free POS Business Startup Checklist

Download our POS Business Startup Checklist (2025 Updated) to make sure you’re not missing any critical step.