How Do POS Agents Make Money
POS business began to spread in Nigeria in 2013 after the Central Bank of Nigeria (CBN) introduced the agent banking system in 2013. This opened up a new portal for financial services to reach bank customers in remote, unbanked, and underbanked societies. This means that POS businesses serve as a way to extend the services offered by financial institutions to relatively unreached parts of society.
This is not the only problem solved by the agent banking services, however. Despite the push for a cashless economy in the world, Nigeria and other developing countries like it are still predominantly cash-based. The long queues and irregular network services at Automated Teller Machines (ATMs) encourage many customers to find alternative ways of receiving money or performing transactions. Asides from this, it also helps consumers withdraw money with ease when the nearest ATMs are far away. In other words, POS businesses make it easy for consumers to get the money they need in exchange for a commission.
How do POS agents make money?
The POS business is very profitable in Nigeria. This is partly due to the lack of access to banks within rural communities and remote settlements.
Once you have a good location and have built trust with the locals, you can be making as much as 7000-10,000 Naira on average, daily.
This figure comes from the commission that is gotten from every customer that uses the POS machine. A percentage also goes to your POS provider while you keep the rest as commission.