pinterest yandex
Posted in: Business Guide

How To Start POS Business & Make Over 150k Monthly

POS business has remained one of the most lucrative businesses in Nigeria today. This is because people make transactions everyday, and ATMs are just available only at few places in any location. According to a data from Nigerian Interbank Settlement System (NIBSS), the volume of POS transactions on the month of December 2022, was N826.3 billion. That is to show you the high demand of POS transactions.

Even when an ATM machine is close by, some people would still prefer using the POS, if there is an agent closer. That saves them the cost and time of transporting to the ATM, since the POS agents will charge them just a token, and the transaction is always instant, no much standing on queue like at the ATM. In fact, I have even seen many people doing POS business very close to a Bank, and they are still making it there.

Since the introduction of POS transactions in Nigeria in the year 2012, there has being a tremendous increase in the number of people doing POS business, and today, everywhere is filled up with POS banners. Despite the number of people doing POS business, it would continue to remain lucrative. In a good location, even if there are more than 10 POS operators there, each of them would still make a good number of transactions before the day ends.

How Profitable Is POS Business?

As a business person, one of the most important factors to check when starting a new business, is the profitability of that business. In this regard, POS business is very profitable. If you are in a good location, you can be making up to N150,000 or above, monthly.

How is this going to be possible? Remember that the least amount of POS charge is N100 per transaction. This means that if you are in a good location where you make transactions of up to N500,000 daily, you can be earning at least N5,000 or above, daily. That should be giving you about N150,000 or above, in a month.

I know definitely that it would sound unbelievable to some people that one can make over N150,000 from POS business; but the truth is that there may not even be a limit of amount of money you can make from POS business. It all depends on your ability to get a good location, and manage your business very well.

You also need to always have enough cash for your transactions, if not, by the time customers come to make transactions and you tell them that cash has finished, some of them may not want to come to your shop again.

How Much Can I Use To Start A POS Business?

The cost of starting a POS business in Nigeria is from N100,000 to over N1 million, depending on the demand for transactions.

In POS business, your capital is majorly the one for transactions. You may not necessarily need a shop to start a POS business, an Umbrella is really enough unless you have other things you want to sell in the shop.

The cost of the Umbrella may be at N5,000 or above. You may also need a table & chair, which may cost you up to N10,000. Then you may need at least one POS machine, and the cost of a POS machine ranges from N25,000 to over N50,000, depending on the type and brand. The cost of all the materials listed above should be about N50,000 or above.

Then, you may need at least N200,000 for your daily transactions. If you are in a good location where there is a high transaction demand, then N200,000 may not really be enough for you. For example: In a big market, a single customer can even withdraw up to N200,000 once.

In this kind of place, you may be needing up to N1 million for a smooth transaction. This is because, you will need to divide the cash, use part of it to fund your POS machine, from there you can be making deposits for customers. Then hold some as cash, for withdrawals. If it’s not a too commercial location, then N100,000 is even enough to start a POS business.

How To Start POS Business

Now you have known some important facts about POS business, let’s now guide you on how you can get started successfully, and make good profit in the business.

1. Get A Good Location

As pointed out already, while starting a POS business, you need to first look for a good location, because that greatly determines your profit in the business. How lucrative your POS business would be depends on where you situate your shop or POS point. Because the more transactions you make, the more profit you make.

Generally, POS business would do very well in places or business areas where there is much population, but has few or no bank or ATM. Some of such good places are:

  • Close To Market

Market area is one of the best location that will greatly favour your POS business. This is because both traders and buyers would always need the final point where they can run their transactions.

  • Close To Mechanic Site

Motor or motorcycle repair site is another good location that would enhance the profitability of your POS business. This is because those that came to repair their cars, motor or motorcycle don’t always have the right estimate of the amount they would spend.

In this, they would always need where to make withdrawals if needs arises. Also, some may come to buy motorcycle or spare parts, and may not have enough cash with them.

  • Campus Environment

Thinking of the best location for your POS business, then Campus environment would really be a nice option. Campus environment greatly favours POS business because of the presence of students, especially if there is no banks close to the Campus.

  • NYSC Orientation Camp

National Youth Service Corps (NYSC) orientation camp is another hidden lucrative location that would favour your Opay POS business. Though NYSC orientation is not always a constant program, but the amount of money you would generate within the 21 days orientation exercise in every Batch, would really surprise you.

2. Get A Good POS Machine

A good POS machine is one that has good, stable network, and low charge rate. If your machine is the type that the network always frustrate in any transaction, or the one that is fun of debiting customers on a declined transaction, then customers are already running away from you.

You may also need to get a popular POS machine, that people are used to. This because the rate of fraud today always scares customers whenever they see a POS brand that is strange to them.

3. Run Different Services For Customers

How to start POS business

There are many services you can offer in your POS business, and always charge your customers. Some of these services are:

  • Withdrawl
  • Deposit
  • Money Transfer
  • Opening Of Accounts
  • Airtime Recharge
  • Recharge Card Printing
  • Payment Utility Bills like Electricity, Cable TV, Tax, etc
  • Mobile Data Subscription
  • Sports Bet, etc…

Then how would you really make money from POS business by running these services listed above? Of course you know that you can actually make money from these services simply by charging your customers to complete any of the service for them.

Apart from making money from charging customers, you will also earn money from the commissions that your POS company gives you for every transaction you complete. Every POS company has specific commissions they pay their agents for every transaction they make with their POS machine.

Using Opay POS as example, below is the structure of their commission for every transaction listed in the table:

S/NServiceCommission (%)
1Etisalat Recharge4.5
2Aitel Recharge4
3MTN Recharge3
4Glo Recharge4
9Withdral/ Deposit30 – 45

How You Can Make Over N150k Monthly In POS Business

The major way to generate income from POS business is by charging customers for each service or transaction they make.

So, Let’s break down how you would actually be making over 150k in a month:

Depending on your location, you may be charging your customers at least N100 for every withdrawal/deposit of N10,000. This means that any withdraw/deposit less than or equal to N10,000 would be charged at N100; while withdraw/deposit from N11,000 to N20,000 would be charged at N200.

Then let’s assume that in your location, customers are able to make transactions of at least up N500,000 in a day.

This would give you 500,000 ÷ 10,000 = 50 (You charge N100 for transactions of ever N10,000 and there are N10,000 into 50 in N500,000)

So, 50 × 100 = N5000 in a day; and in a month, it would amount (N5,000 × 30) = N150,000 in a month.

This doesn’t mean you won’t be making transactions higher than this; if you are in a good location, I am sure that you would be realizing more than what we just described.

Not only this, there are still some other services that customers would also demand within the same day, through which you can also be making your money.


To start POS business, all you may need are shop/Umbrella, table, chair, a POS machine and enough cash for transactions. Your daily profit depends on the number of transactions you make in a day; the more transactions you make in a day, the more profit you make. In this, if you really want to make good profit in the business, then you may need to get a good location, where there is high demand for POS transactions.

Comments (8) on "How To Start POS Business & Make Over 150k Monthly"

  1. Please how will I know that I have earned commission because I just started the business and I have 0.00 showing in commission even as I have done transaction of 20,000.

Leave a Comment

Back to Top
Verified by MonsterInsights