The POS business in Nigeria keeps booming and has become a lifeline in many communities, especially the underserved areas. From small villages without a single bank branch to bustling Lagos streets, POS agents meet real financial needs daily. The boom and rising competition expose agents to fraud risks and operational challenges, so not everyone stays profitable.

To remain in the POS business and grow, you need more than a terminal and a branded umbrella. This guide breaks down the real-world dos and don’ts of running a thriving POS business in Nigeria.

Understanding POS Business in Nigeria

A POS (Point of Sale) business is a mobile banking service run by agents who carry out financial transactions like withdrawals, deposits, transfers, airtime sales, and bill payments for customers, usually via a handheld terminal or mobile phone linked to a fintech or bank.

In reality, a POS agent in Nigeria is a local bank branch substitute, especially in underserved areas. Whether you’re under a kiosk in Oshodi or operating from a remote area, you’re offering banking on the go. And with over 1.9 million POS terminals in Nigeria (as of 2024), this business isn’t slowing down.

What Are the Dos of Running a Successful POS Business?

• Do treat liquidity management like a lifeline.
  Running out of cash or having no funds to complete transfers is the fastest way to lose customers. So, know your area’s transaction patterns and keep enough cash ahead for weekends or month-end salary rushes.
• Do verify customer details before every transaction.
  Always double-check account numbers and phone numbers aloud before processing a transaction. A few seconds of confirmation can save you a full day of customer drama or financial loss.
• Do charge fair, location-sensitive service fees.
  Understand what other agents around you charge. If you’re the only agent in a low-access area, you can charge slightly higher, but if you’re in a busy hub, overpriced fees will drive customers away.
• Do build relationships, not just transactions.
  Greet regular customers by name. Offer a seat if they’re waiting. Let people know they can trust you with their money. These little acts make you the go-to agent and build loyalty beyond rates.
• Do invest in two different terminals or fintech platforms.
  Have more than one POS machine, preferably from different service providers, as a backup.  Even if you use it less often, it keeps you in business when others are offline.
• Do keep a visible record of daily transactions.
  Track every transaction to protect you from disputes and help spot errors fast.
• Do prepare for fraud attempts.
  Train yourself and your staff to spot suspicious behaviour and never release cash without confirmation, no matter how long the customer waits.

What Are the Don’ts of Running a POS Business?

• Don’t let strangers use your POS device.
  Only process transactions that you control. It may sound harmless to “just help” someone run a transfer, but if it turns out to be a scam or linked to illegal activity, your name and business bear the risk. 
• Don’t borrow from your capital for personal expenses.
  Treat your working capital like sacred business money. Once you start borrowing “just ₦5,000 for weekend fun,” you’ll soon struggle to meet Monday morning withdrawals.
• Don’t rely solely on foot traffic—market yourself.
  You can use small but effective tactics: print flyers, list your services clearly outside your kiosk, offer ₦50 discount promos on slow days or walk around to meet customers, especially if you’re located in a motor park or market. Remember, the agent who is “seen” earns more than the one who waits.
• Don’t assume every POS machine is secure.
  Some POS terminals lack encryption and expose your customers’ data. Work with licensed fintechs like Phlex Payments that have proper customer protection policies. Don’t be cheap with people’s financial information.
• Don’t ignore machine or card reader errors.
  If your machine keeps declining cards or showing “issuer or switch inoperative,” fix it. Customers won’t keep forgiving repeated failures; they’ll just move to the next agent.
• Don’t overcharge and underdeliver.
  Charging ₦200 for a ₦5,000 withdrawal with no receipt, delays, or rude service will earn you a bad reputation, which is not good for business. Make your service worth every naira.
• Don’t forget security.
  Don’t leave your POS machine or money unattended, even for one minute. If you close late, arrange a safe way to store or move your cash. Many POS agents have lost everything to one careless night.

Our Take

The POS business in Nigeria is filled with opportunity, but it’s also filled with risk, fraud, and fierce competition. If you’re serious about making a steady income as an agent, aside from the POS machine, discipline, trust, and street-smart strategies are your best tools. Apply the dos and don’ts above in your daily operations, and you’ll stay competitive and profitable. 

Do you need a new or an additional POS machine for your agency banking business? Contact Kashzoo customer support for enquiries.