POS business is a very lucrative B2C business in Nigeria.
One of the biggest advantages of a POS business is that it is easy to start with less capital.
Little wonder it is one of the most saturated businesses in the small business niche in Nigeria.
If you’ve been thinking of starting a POS business, there’s a high chance that your primary plan is to help people withdraw cash, deposit cash, and transfer cash.
However, a POS business is a lot more than that, and with the industry becoming more saturated, we are beginning to see more and more niched POS businesses springing up.
In this post, we’ll look at 6 Types of POS businesses in different niches, which anyone can start to gain competitive advantage.
Cash Withdrawal, Deposit & Transfer POS
This is the standard POS business, and is the default idea most people think of when they want to start their POS shop.
So, it is quite straightforward.
You get a shop at a good location, a POS terminal, and cash to start with.
With this kind of POS business you could realistically make 5k per day for a start.
Bills & Utilities POS Center
Most POS businesses would merge bills and utilities payment into their business offerings.
But the fact is a POS business can function as a standalone bills and utilities POS center.
In this type of POS business, you can offer fast bills payment such as:
- Electricity bills
- Airtime
- Internet broadband Data
- Cable TV bills
- Remita Payments
- Waec / Jamb Scratch cards
- Other registrations
It is left for the POS operator to continue adding different bills payment types to grow their offerings.
A bills & utilities POS center could make about 5k per day.
Crypto & Gift Cards Redemption
Even though many would not want to admit it, crypto has come to stay.
At least, one in ten persons in Nigeria today has either bought or sold a cryptocurrency.
So, what does that mean?
It means that there is a market for physical crypto shops to make money.
Oh, you heard that crypto is banned in Nigeria?
Well, gift cards are not banned. So, you can set up a gift cards transaction shop while also offering crypto transactions on the side.
A crypto and gift cards redemption shop in Nigeria would make about 10k per day.
Foreign Exchange POS
Forex, especially dollars, is a very scarce commodity in Nigeria.
Even the banks that are instructed to provide dollars are having a hard time providing it for customers.
Hence, the growth of out of banks dollar shops where you can trade your naira and dollars.
One thing to know about the Forex POS business is that it is more of a mobile business.
While you could sit in one place and still make money, you can make even more by walking around to find your customers.
Most of the forex POS guys could either be seen on roads close to banks or even inside the banking halls trying to convince customers to patronize them.
A Forex POS business can make up to 50k per day.
Cash Exchange (Cash-to-Cash) POS
When it comes to “owambe” Nigeria comes first.
But you know with such occasions comes the need for either breaking down high denominations of the naira or buying crispy naira notes used for spraying.
A cash exchange POS does what the name says.
They help people exchange their naira for naira.
Yes, some naira can be more desirable than other naira. Welcome to Nigeria.
These cash exchange POS businesses offer services such as:
- Exchanging old Naira notes to mint ones
- Exchanging higher naira denominations for lower ones
- Exchanging lower naira denominations for higher ones
- Exchanging worn out or spoilt naira notes for good ones
The average cash exchange POS business can realistically make about 10k per day.
Lotto & Sports Betting POS
Lotto and sports betting are very popular ways of gambling in Nigeria.
Every weekend, millions of youth troop out to put their money where their mouth is.
This means that most lotto and sports betting shops are crowded out on a weekly basis.
In other words, these shops are making a killing on a weekly basis.
The higher the number of betting tickets they can sell, the higher the money they can make.
These lotto and sports betting shops are now even being operated in kiosks by roadsides or around street corners.
One good thing about this business is that it is very cheap to start.
Once you have a shop location or a kiosk and a little capital, most betting companies, especially new ones, are happy to give you their POS terminal for free.
You only have to start and then pay back the cost of the POS terminal from your sales going forward.
The average lotto or sports betting POS shop makes 5k per day.
Conclusion
You don’t have to limit yourself to one POS business.
Most shops will combine two or three of the POS businesses from this list and triple their daily income.
The idea of a POS business is to always be on the lookout for what customers want that you can offer from your POS terminal.
The more services you are able to offer from one point of sale, the more profitable your business would be.