POS Business: How to make more profit in POS business

As at March 2024, the number of POS (Point of Sales) operators in Nigeria either as a merchant or individual rose to 2.7 Million, according to Inter-Bank Settlement System (NIBSS) a platform operated by all banks in Nigeria

The previous year, the number of POS operators in the Nation was 1.7 Million, this is a 50% increase a year after.

POS business has become one of the major business for Nigerians especially the huge population of unemployed graduates

As the number of operators have increased by 50%, the profit margin of the business has drastically hit by heated competition among operators, merchants and even traditional banks and fintechs

How to make more profit in POS business

These days, you see 10 to 20 POS operators in a single street

As a POS operator in Nigeria, how can you you increase your profits and earn more customers loyalty even in the phase of competition

Start door-door service

Instead of sitting all time in the kiosk, you can start moving door to door to offer home services to customers that want to withdraw or transfer money

Bill services such as recharge cards, data subscription, cable TV are services that can be provided door to door

This gives the business a competitive advantage and help reach many people

Register your business with CAC

This is one of the important decision you should make to scale your POS business. Infact, registration with CAC has become compulsory for all POS operators

CAC (Corporate Affairs Commission) is the body that regulates businesses in Nigeria and for any business to operate in Nigeria including POS business, it is important a proper filing is done with them

Important thing the CAC registration will do for your POS business is to help cover other businesses beyond the POS business

Thinking of starting your registration with CAC, start here

Provide other services to POS customers

POS business is a retail business. Someone can withdraw money 5 times a day in same POS business. More services can be offered such customers and other customers

Look at your location, what other services with interesting profit margin can you add?

You can start selling phone accessories

You can start food business

You can start grocery store

Think of businesses your POS business traffic can serve and make extra profits

Design a loyalty program

I have been using a particular POS operator for some times and has not deemed it fit to ensure I keep coming back no matter what

You can design a loyalty program which makes it impossible for your customers to go to another POS operator in your environment

For example, you can say for every 10 transactions a week, customer will get a refund of N100. This will help you retain your customers and make them loyal to you

Design a referral system

Additional to the loyalty program, you can let your customers earn something on every persons they referred to your business

For example, you can say for every 5 referral a day, the customer gets a free withdrawal

Something that will attract people to refer to your business will help you gain more customers and make more profits in your POS business

You can try and implement these in your POS business and see how it will increase your profits in no time

Apply for Grants for your POS Business

POS businesses are eligible for grants too. And now that the Tony Elumelu Foundation $5,000 grant application is opened, you should apply

Apart from the grant, there is going to be a world class mentorship training for successful applicants to learn from industry experts

To ensure increase in chances of being selected, don’t limit your application to only POS operations. Add other ideas and business to the POS business

Here is a step by step to register for the Tony Elumelu Foundation $5,000 grant