In Nigeria, POS agents have become a vital part of the financial landscape, offering banking services such as withdrawals, deposits, and transfers. However, in recent years, many POS agents have expanded their service offerings to include bill payments and other convenient services, such as betting wallet payments. This shift has transformed POS stands from simple transaction points into multifunctional business hubs, providing services that go far beyond the traditional banking role.

Expanding Beyond Traditional POS Services

Demand for more convenience continues to grow, hence, POS agents have increasingly adopted bill payment solutions.This enable them to meet customers’ needs. The ability to pay bills for electricity, TV subscriptions, mobile data, and even betting wallets directly at a POS stand has turned these outlets into highly valuable resources within communities. Offering these services, help POS agents to boost their business and also provide customers with desired convenience.

Below are key benefits that bill payment solutions bring to POS agents;

1. It Increases Customer Service and Loyalty

Almost everything in our world today is fast paced, including customers demand for quick access to a variety of services all in one place. This is where bill payment solutions come in. Adding services like electricity bills, DSTV/GoTV, water bills, and mobile data payments helps POS agents create a one-stop shop that meets a customer’s needs.

When customers see that their POS agent can handle multiple tasks efficiently, they are more likely to return and recommend the agent to others, creating a ripple effect of new business.

Providing bill payments helps agents to;

• Reduces customer churn: The more services you offer, the more customers continue using your products or services.
• Builds long-term relationships: Providing consistent and reliable service creates loyal customers who depend on your POS system for their daily needs.
• Improves visibility in the neighbourhood: Word-of-mouth referrals from satisfied customers can help raise awareness and attract more foot traffic to your location.
• Boosts customer satisfaction: People value convenience, and POS agents who make bill payments quick and easy tend to build a solid reputation.

2. Improved Agent Competitiveness

Competition among POS agents is fierce, especially in urban areas where you can find a lot of agents offering the same services like cash withdrawals and transfers. It’s easy for a POS stand to get lost in the crowded market. However, POS agents who go beyond the basics and offer essential services like bill payments can stand out from the competition.

Providing bill payment services allows POS agents to become a go-to hub in their community. For example, a POS agent who handles bill payments for

• Electricity (PHCN)
• DSTV/GoTV subscriptions
• Mobile data and airtime top-ups
• Water bills
• Betting wallet funding

becomes important to customers who need these services. With this added convenience, agents can build a loyal customer base and attract more business.

3. Increased Revenue Streams

POS agents can tap into a new source of revenue when they add bill payment to their business. Many bill payment services come with transaction fees or commission-based models, which means that each bill paid at your POS stand can generate additional income. Agents who want to maximise their earnings can consider adding bill payments to open up opportunities for growth.

The benefits of increased revenue streams for POS agents that offer bill payment are;

• Diversified income: Bill payments provide agents with a consistent revenue source outside of basic banking transactions.
• Higher profit margins: Transaction fees or commissions on bill payments can significantly boost overall earnings.
• Scalability: As more customers utilise the bill payment services, the revenue potential increases, enabling agents to scale their business.

4. Strengthened Community Relationships

When a POS agent provides bill payment services, they become the go-to person that customers can rely on. The agents can be counted on to handle critical services, such as paying electricity bills and topping up their mobile phones. Community trust strengthens the agent’s position in the market, as satisfied customers may continue using their POS agent for essential services.

Benefits of strengthened community relationships include;

• Increased foot traffic: A trusted POS agent becomes a local hub where customers frequently return for various services.
• Positive word of mouth: Happy customers spread the word. This will lead to more referrals and loyal customers.
• Community loyalty: Offering vital services encourages a sense of loyalty from customers, who view the POS agent as a trusted part of their daily lives.

Our Take

Bill payment solutions are a game-changer for POS agents. Agents can expand their service offerings to include payments for electricity, TV subscriptions, mobile data, and even betting wallets. Agents will increase customer loyalty, improve competitiveness, create new revenue streams, and strengthen their community presence.

Any POS agent looking to thrive in the competitive market should provide added value, thereby becoming indispensable. You can get started with a good POS machine like Kashzoo.