Home Business Structure How to Start a Profitable POS Business (Part Two).

How to Start a Profitable POS Business (Part Two).

by Precious F

Starting a POS (Point of Sale) business in Nigeria requires careful planning and financial management. In our previous article, we covered what you’ll need to start your POS business, from market research and equipment to marketing strategies. In this, we’ll be looking at the cost, requirements, and methods of becoming a POS agent through various financial institutions.

Estimated Cost of Starting a POS Business

Business Registration

To operate a professionally structured POS business in Nigeria, it is usually advisable that you go through proper business registration, which includes getting a tax identification number and other relevant permits. The cost of registration with CAC will vary depending on the type of business structure you choose, but it can range from ₦20,000 to ₦60,000.

POS Machine

The POS machine is the main equipment needed for this business. You can purchase a new POS machine for about ₦50,000 or a used one for about ₦20,000. If you’re getting this directly from a financial institution, you can get a POS machine for free, only paying a caution fee.


You need a location to set up your POS machine. Renting a small shop or space in a busy area could range from ₦20,000 to ₦40,000 monthly. If you need tips on how to choose a location to start your business, refer to the first part of this article.

Internet Connection & Marketing

You need an internet connection to run a POS business. The cost of purchasing a router and subscribing to a monthly data plan ranges from ₦5,000 to ₦15,000, depending on the internet service provider. You also need to promote your business to attract customers. This could involve printing flyers, banners, or business cards, costing about ₦10,000.

Initial Cash Float

You need to have cash available for transactions. Depending on the volume of transactions, you should start with at least ₦50,000

Other expenses

This could include the cost of buying stationery and other miscellaneous expenses, which could range from ₦5,000 to ₦10,000.

Therefore, the estimated total cost of starting a POS machine business in Nigeria is as follows:

  • Business Registration: ₦20,000 to ₦60,000
  • POS Machine: ₦20,000 to ₦50,000 
  • Location: ₦20,000 to ₦40,000 per month
  • Internet Connection: ₦5,000 to ₦15,000 
  • Marketing: ₦10,000
  • Initial Cash Float: ₦50,000 
  • Other expenses: ₦5,000 to ₦10,000 

Total: ₦130,000 to ₦226,000 

Note: These estimates are just a rough guide, and the actual cost may vary depending on various factors such as location, business strategy, and competition.

How to Become a POS Agent

To perform mobile money services such as withdrawals, transfers, and bill payments, a POS agent must select and be approved by a financial institution. This leads to a very common question: Which bank is the best for POS business in Nigeria?

Several banks and financial platforms in Nigeria offer Point of Sale (POS) services for businesses, but the optimal bank for a POS business in Nigeria may vary based on factors such as the size of the business, transaction volume, location, and the specific services required. 

To become a POS agent, it is necessary to either open a bank account with the financial institution you intend to work with or operate under a bank with which you already have an account. The latter is often preferable as your transaction history can increase your chances of being accepted as their agent.

Official Requirements

The Central Bank of Nigeria has set some requirements that POS agents must meet before any financial organization approves them. You can get details of the requirements either by going to the bank you have chosen or by contacting their customer care. The CBN permits POS agents to work under various POS service providers, but the required documents for each provider might vary from the other. Some of these documents include:

  • Valid means of identification i.e. National ID Card, Voter’s ID Card, National Identification Number, etc.
  • Passport photographs
  • Bank Verification Number (BVN)
  • Current Account references
  • Evidence of business registration (CAC Certificate)
  • Start-up funds/ capital minimum of NGN50,000
  • Tax Identification Number (TIN)

Agents whose applications are approved by the bank are given a POS machine, free or attached with a cautionary fee. Some popular financial institutions for POS Agents include:

  1. OPay mobile bank
  2. Monie Point POS
  3. Palm pay
  4. Other Fintech platforms
    1. Paga
    2. Bankly 
    3. Kudi bank
    4. Baxibox
    5. Quickteller
  5. Financial institutions
    1. GTbank
    2. First bank
    3. Zenith bank
    4. Access bank
    5. Wema Bank
    6. UBA
    7. Ecobank

How to start a POS business with Opay POS

Opay, also known as Paycom, is a licensed mobile money platform. As a fast-rising Fintech company, Opay has used its POS agency to create opportunities for many Nigerians. 

If you’re looking to become an Opay agent, you can download the Opay app and sign up to become an agent without making any payment. With the OPay POS, one can carry out the following transactions;

  • Receive and transfer money 
  • Pay less money for airtime on the Opay app and get discounts while doing this.
  • Subscribe to different TV service providers and earn money as a commission
  • Pay electricity bills quickly and easily.

Requirements for starting an OPay POS business

You need the following to register your Opay POS business;

  1. Bank Verification Number (BVN)
  2. Utility bills not older than three months
  3. Valid means of identification
  4. Passport photographs

How to become an OPay POS Agent

If you have an Opay merchant account with a good transaction history, you are eligible to become an Opay POS agent. All you need to do is register your brand and apply for a POS with the following steps:

  • Visit the Play Store to download the Opay app
  • Email [email protected] requesting an OPay merchant registration form, or log into the Opay app and choose the Merchant application icon
  • Input your correct details
  • Upload all the required documents
  • Submit your application form for review

The Opay POS is free for merchants who have built a good transaction history with Opay, but they must have a caution fee of NGN20,000 available in their wallets. After the approval of your application form, Opay will deduct the caution fee from your account. For new Opay agents who can’t wait to build their transaction history, then they can buy an Opay POS machine with the following steps:

The price of an Opay POS machine varies according to type. They are:

  • ₦60,000 for OPay Smart POS
  • ₦45,000 for OPay Traditional POS
  • ₦10,000 for OPay Mini POS.

OPay charges per daily transaction which is 5% and the agent will receive the remaining 5% or more as income, it depends on the price the agent charges the customers per transaction.

How to start a POS business with Monie Point POS

Moniepoint is a credible, fast-growing mobile money platform that allows you make money by providing banking services to the public. There is no cost to become a Moniepoint POS agent, and the platform offers fair charges and commissions so its agents can make a good profit from the POS business. Moniepoint offers the following services:

  1. Cash withdrawal
  2. Fund Transfer
  3. Instant Settlement
  4. Payment of Utility Bills

Requirements for Starting a Moniepoint POS Business

To start a Moniepoint POS business, you need the following items:

  • A verified identity card such as a driver’s license, Voters’ card, International Passport, or National ID Card
  • Utility Bill (PHCN Bill)
  • Business License or CAC certificate (for registered businesses only)
  • Valid Bank Verification Number
  • Valid bank account number

How to Become a Moniepoint POS Agent

The official Moniepoint website offers you an option to become an agent in the following steps:

  • Create a new business account with Moniepoint
  • Request for a new POS machine and follow the instructions given
  • Complete your request by funding your account with a minimum of ₦21,500, which covers a logistic and caution fee of ₦10,000 each, alongside an insurance fee of ₦1,500.
  • After your request is approved, Moniepoint assigns a relationship manager who will deliver and train you on how to use your new Moniepoint POS machine.

How much does Monie Point POS charge?

Moniepoint POS transaction charges are quite low, and probably the cheapest. Unlike other POS providers, they base their charges on the number of transactions you execute. The Moniepoint fixed charge is at ₦20 for all banks in Nigeria. The charge for withdrawing up to ₦4,000 is merely ₦6.2, and this rises as the amount withdrawn increases. Moniepoint does not charge any extra bank fees, unlike many other POS service providers.

How to start a POS business with Palmpay

Palmpay offers several financial services through their POS agents. Some of these services include:

  1. Cash withdrawal
  2. Cash Deposits
  3. Airtime and Data
  4. Payment of Bills

Requirements to become a Palmpay POS Agent

You need the following documents to become a Palmpay POS agent:

  • Business Permit (for registered businesses)
  • Valid Identification document 
  • Passport photo 
  • Recent utility bill i.e NEPA bill
  • A Valid Account Number
  • A Valid BVN
  • Evidence of a location i.e a video of your shop
  • Personal information i.e date of birth, phone number, gender, email address, phone number, etc.

How to Become a Palmpay POS Agent

If you want to become a Palmpay agent, you can apply online here by filling out the merchants form. You can also download the Palmpay business app, register your business and fill out all the necessary data to be approved as a POS agent. Palmpay will start your POS payment and delivery process after this, and it should take about seven days. They also give their agents free marketing products such as banners and brochures.

Palmpay has POS machine models: 

  • The analog POS model costs ₦40,000 for a new machine, and ₦20,000 for a used machine.
  • The smart POS model costs ₦60,000 for a new machine and a used one goes for ₦30,000

How much does Palmpay POS charge?

Palmpay POS charges a 0.5% withdrawal fee on every ₦1000 withdrawal. This means that the charge for withdrawing ₦1000 will be ₦5, ₦5000 will be ₦25, and so on. They also charge a fixed fee of ₦10 for every deposit made with their POS machines.

Other Fintech Platforms

There are several other financial platforms that give you the opportunity to become a POS agent with them. Some of these platforms include:

  1. Paga
  2. Bankly
  3. Kudi
  4. Baxibox
  5. Quickteller

These financial institutions allow individuals to supplement their income by becoming POS agents. Each platform offers the following services

  • Cash Withdrawal
  • Cash Deposits
  • Transfer of Funds
  • Utility Bill Payments
  • Airtime and Data Payments

Baxibox, however, offers extra services such as payment for tickets to public events, generation of WAEC pins, and Insurance payments.


Each platform has their own varied requirements for people looking to register with them as agents. However, the basic requirements include:

  1. Personal Data i.e name, age, email address, phone number, location, etc
  2. Means of Identification i.e Drivers license, National ID card, etc
  3. BVN/Bank account number
  4. Business certificate/license (for registered businesses)
  5. Utility Bill
  6. Passport Photograph

How to Become a POS Agent with Each Fin-tech Platform


To become a Paga agent, visit the agent page on their website or send an email to [email protected]. After you fill out this form, a representative from Paga will contact you for the on-boarding process. Paga provides their agents with training that allows them to provide their customers with POS services. Paga agents also receive bonuses and a commission for each transaction they perform. If they do not contact you after 7 days of filling out the form, send an email to [email protected]


Bankly has a different process. To register with the platform, agents have to:

  • Download the Bankly Agent mobile application or visit the Bankly website.
  • Create a business account with Bankly by signing up in the mobile app or visiting here
  • Verify your account with the necessary documentation.
  • Request for a POS terminal after logging into your account.
  • Log in to the app and start your transactions.

It should take between one to seven days to get your free Bankly POS machine. The only thing necessary is a startup capital, which is a minimum of ₦20,000, and a caution fee of ₦15,000. If an agent returns the POS terminal in good condition, Bankly will give a refund of ₦10,000. The company can decide to collect the POS terminal if the agent does not use it or does not meet the set target of thirty transactions daily.


With Kudi, the steps to becoming a POS agent are as follows;

  • Download the Kudi app from the app store.
  • Open an account with Kudi by signing up with your phone number
  • Connect the Kudi app to your functional bank account
  • Start transactions after funding your e-wallet
  • Keep using the application for transactions such as airtime recharge, TV subscription, and electric bills
  • After continuous use of the Kudi platform for two weeks, you can now check your inbox or enquire about your eligibility for a free POS.

Rather than waiting for eligibility, you can go to the nearest Kudi office or call their customer care. Their Lagos office is located at 19b, Bosun Adekoya Street in Lekki Phase 1. You can request the agent’s form, fill in your correct details, and submit it at this location. The Kudi team will then request you to pay a caution fee of ₦20,000 immediately, after which your application will be approved and you can get your POS machine.

Kudi POS agents deliver a transaction report at the end of each day. The purpose of this is to show that you can meet the transaction daily target on the Kudi POS.


Below are the steps involved in becoming a Baxibox POS agent;

  • Download the Baxibox app on your phone
  • Find the registration option
  • Use your Bank Verification Number to upgrade your account to Baxi Flex or Baxi Pro
  • Fill in the information for KYC
  • Request for the Baxibox POS terminal
  • Fill out and submit the form
  • Get your guarantors to fill theirs.
  • Make the payment for the Baxibox POS device
  • Submit the required documents for registration to get the POS device
  • Submit the already signed form and the guarantor’s form
  • Contact Baxi customer care for more information.

Acquiring a Baxibox POS takes between one to seven days. Baxibox charges their agents a caution fee of ₦10,000 for the Baxi MPOS and ₦30,000 for the Android POS. This cautionary fee is to ensure agents do not damage the POS, and payment of this fee does not signify complete ownership of the Baxibox POS.


To become a Quickteller agent, agents must complete the application form and submit it along with the required documents. Then, the agent makes payment for the Agent Start-up Capital (₦10,000) into the platform’s IFIS (Interswitch Financial Inclusion Services) operational bank account. An IFIS Business support partner will inspect and certify the agent’s location. Quickteller activates your IFIS agent account and you will receive login details and a credit alert. An agent must undergo IFIS Agent Banking training to receive a free Quickteller POS and startup kit with the following:

  • IFIS Certificate of Completion.
  • IFIS ID for identification.
  • Transaction Log Book/Register.
  • An Agent code.
  • Branding materials
  • Tariff Sheet.

How much do these Fin-tech platforms charge?

The charges for each platform are shown below:

PlatformPOS CostsWithdrawal ChargesDeposit Charges
Paga₦30,0000.55% for every ₦1000₦30
Bankly₦15,000 for caution fees0.5% for every ₦1000₦10 for amounts below ₦2000₦20 for amounts above ₦2000
Kudi₦20,000₦25 for amounts between ₦100 and ₦4,5000.6% on amounts above ₦4,500
Baxibox₦10,000 for the Baxi MPos₦30,000 for the Android POS0.55% on amounts below ₦20,000₦100 for amounts from ₦20,000 to ₦100,000₦150 for amounts above ₦100,000₦30

Financial Institutions

Banks also offer varied options to entrepreneurs looking to start a POS business. Some of these banks include:

  1. GTbank
  2. First bank
  3. Zenith bank
  4. Access bank
  5. Wema Bank
  6. UBA
  7. Ecobank

POS agents operating under these financial institutions offer the following financial services to their communities:

  • Opening instant bank accounts
  • Cash Deposit and Withdrawal
  • Customer Enquiries
  • Bill Payments
  • Transfer of Funds
  • BVN services

Requirements for Starting a POS business with a Financial Institution

If you’re looking to register with a financial institution, you need to know their requirements. Each institution has different requirements for agents. The most common requirements include:

  • A functional bank account: If you’re registering with any bank as a POS, you must already have a bank account with them. 
  • Valid means of Identification such as an international passport, NIN, etc.
  • Existing business/business location
  • Proof of residential address i.e utility bill 
  • Bank Verification Number
  • Business Registration documents
  • Startup Capital

How to Register your POS business with a Financial Institution

GT Bank

First, it is important to have a GTBank Business Current Account. If you have this, visit the nearest GTBank branch to fill out their POS application form and agreement form. Once the bank approves your application, GTBank customer care will contact you to pick up your POS machine. 

It should take a minimum of two weeks to process your application. Sometimes it can take as long as 30 days, so it is important to keep in touch with the bank’s customer care service. The GTBank POS is free, but for every acknowledged installment, they charge you an expense of 0.75%, which is deducted.

First Bank

To get a Firstbank POS machine, you must deposit a sum of NGN 50,000 into your Firstmonie wallet or agent account. Please note that this money is yours and will remain in your Firstmonie account where it will be visible to you. Below is a guide on how to become a Firstbank POS agent or a Firstmonie agent;

  • Go to the FirstMonie agent banking website; https://www.firstbanknigeria.com/personal/ways-to-bank/firstmonie/agent-banking/. There, you will find a FirstMonie agent onboarding form, which you will fill out and agree to the terms and conditions of their services.
  • Click on the “Send” button to submit your request to Firstbank.
  • To ensure faster processing of your request, you can visit the nearest First Bank branch to check on the status of your POS agent request. Ensure you take along with you the complete list of the required documents.

After your request has been processed, the duration of getting a Firstbank POS is between two to four weeks.

Zenith Bank

To become a Zenith Bank POS Agent, follow the steps below;

  1. Visit the nearest Zenith Bank and go to customer service.
  2. Ask for their POS Agent registration form
  3. Fill and submit it

Once the bank approves your application form, they will give you a Zenith Bank POS machine. Next, download the Zenith banking app on your Android phone and start your POS agency business. Note that it is FREE to become a Zenith Bank POS agent, so you don’t pay any money to any third party. However, the bank expects agents to charge between ₦5 and ₦300 for deposits and withdrawals less than ₦100,000, and the minimum agent commission is about 45%.

Access Bank

The following are the steps to becoming an Access Bank POS agent:

  1. Visit any Access Bank branch, preferably if you have an account with them, and request an agency banking application form.
  2. Fill out the form with the right information and submit it to an agent at the bank. They will ensure you have forwarded your application to the right department for review.
  3. After the Access team verifies your information, they will register you for agent banking.

After you have been verified as an agent, you can request a POS machine from Access Bank through the following steps:

  1. Visit any of the access bank branches.
  2. Go to the customer care section.
  3. Collect the POS request form, fill it out, and submit it back to them.
  4. The Access Bank team will contact you when it is ready.

This process usually takes between one to two weeks, and it is free as long as they have approved you as an agent. Access Bank charges a fee of 1.25% per ₦2,000.

Wema Bank

You can download the Wema Bank POS agent registration form here. Fill it out, submit it at the nearest Wema bank branch, and await further instructions. For individuals who would prefer to do this physically;

  1. Go to the nearest Wema bank branch
  2. Get the Wema POS agent registration form from customer care, fill it out, and submit it.
  3. The bank will contact you if they approve your application

Wema Bank’s POS can take up to one month to collect. The bank has no cautionary fee for their agents, but your bank account must have been active for at least one to six months. The standard merchant service charge is 0.5% per transaction capped at ₦1000.


If you want to become a UBA POS agent, you must meet all the agent requirements listed above. Then, you can follow the steps listed below to get a UBA Moni POS:

  1. Identify a merchant
  2. Print out the enrollment form here.
  3. Get the principal decision-maker to complete the request form
  4. Scan the request form and deliver it to the nearest UBA bank
  5. Visit the e-Banking Helpdesk and log in.
  6. After you follow the instructions, the support team will contact you to inform you of the day they will send the POS.

To become an Ecobank POS agent, download and submit the application form on the Ecobank website. You will need to open an account with the bank if you don’t have one. After the bank receives your application, a representative will contact you within 72 hours. To follow up on your application or inquire about getting a POS machine, you can email [email protected]. When your Xpress point account has been approved, Ecobank will give you a free POS machine. 

How much do these Financial Institutions Charge?

Nigerian banks adhere to the CBN’s Standard Merchant Service Charge of 0.5% capped at ₦1000. Access Bank, GT Bank, UBA and First Bank offer a flat rate of ₦100 per ₦5000 withdrawn from one of their POS terminals. Zenith Bank takes a flat rate of 1.25% of payments above ₦2000.

Final Thoughts

If you’re looking to start your POS business as a side hustle or to complement your current income, registering with a Fintech platform might serve you better than registering with a financial institution. Fintech platforms offer bonus additives to their agents such as trainings, free marketing materials, and better rates. POS business is an additional way of getting income aside from your present business or occupation. Starting a POS business can be a lucrative and rewarding venture, especially for those with a passion for technology and business. However, it is essential to carefully consider the pros and cons before investing in a POS system and to understand the steps involved in starting a POS business.

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x