Don’t Start a POS Business Until You Read This…
It started with excitement. Chinedu had just received ₦150,000 from his uncle in Lagos. The instruction was simple: “Use this money to start something useful. Make it grow.”
Like many young people in Nigeria today, Chinedu turned to the booming POS (Point of Sale) business. “Everyone is doing it,” he thought. “People withdraw and transfer money every day. It must be easy money!”
He bought a second-hand POS machine for ₦35,000, rented a small umbrella space in his area, printed a banner, and opened shop.
But two weeks later, Chinedu was already frustrated.
🛑 Here’s What He Didn’t Know:
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1. Not All Locations Are Profitable
Chinedu set up in a street where there were already 3 POS agents. The customer flow was low, and many people still preferred walking to the nearby bank ATM because it was free.
📌 Tip: Before starting, study your area. Ask: Are there many agents? Is there a nearby ATM? Do people feel safe here?
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2. Network Issues Will Test Your Patience
His POS machine often showed “transaction failed” or “network error” — especially during rush hours. Customers shouted, and one even accused him of fraud when ₦10,000 was debited but not received.
📌 Tip: Make sure your POS provider has stable network support in your area. And always keep records for dispute resolution.
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3. Not All POS Providers Are Reliable
He got his machine from a random agent who promised fast service and 24/7 support. But when the machine stopped working after 5 days, the agent ghosted him. No refund. No help.
📌 Tip: Always register with a trusted POS company like Moniepoint, Opay, Palmpay, or Baxi. Do your research.
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4. Security is a Real Issue
One evening, a customer pretending to withdraw ₦2,000 handed him a fake alert. In the same week, two other agents were robbed nearby.
📌 Tip: Verify alerts with your bank app or SMS, not just screenshots. Operate in a well-lit, busy area and close early if necessary.
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5. It’s Not Just About the Machine
Chinedu realized he needed a business plan: daily record keeping, float management, customer service, and even petty cash for change.
He didn’t think about charges, or how to grow his business beyond just withdrawals and transfers.
📌 Tip: Consider adding utility bill payments, DSTV subscriptions, airtime sales, and mini savings to make more money.
💡 Bottom Line:
Starting a POS business is not a bad idea — but doing it without proper knowledge is a big mistake.
Today, Chinedu has restarted with the right provider, a better location, and learned from his mistakes. He now earns up to ₦5,000 daily.
