Point of sale otherwise known as POS can serve as an additional source of income for an individual or even a full time business depending on your location. We will definitely get to the reason why we say a full time business with location as a major factor.
There’s a 99.9% chance that you must have come across a First Monie POS business poster in one location or another. You will agree with us that the more populated a region is, the more queue you will find in the Bank and ATM stands in such location. This also affects the rate at which financial transactions are carried out, if only one can look into this problem and find a solution that will counter this problem, hence earning an income from this.
One look at this problem, the simple solution will be setting up more Banks and ATM stands. What if you as an individual could extend such financial services to people? Yes, it’s 100% possible. This leads us to our topic of today, how to start a profit-making POS business.
What is a POS Business all about?
POS business is basically an agent banking business where transfer of money, withdrawal of funds and bill payments such as GOTV, DSTV, Startimes, electrical and other utility bills can be carried out with ease.
Financial institutions allows this extension of their services to be carried out by individuals and these individuals are referred to as agents.
The possibility of creating wealth from this business are endless, take for instance; A location where there are few or no Banks or ATM points at all, this business is sure to blossom due to the fact that people will not mind paying whatever extra fee placed on the services you offer. There is no community where the need of money and swift transaction is not common.
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How profitable is POS business?
POS Business is profitable in the sense that, whatever business transaction you as an agent carries out, you earn an amount of money. The extra fee your customers pay in return for the service you offer is known as convenience fee. For this business to run smoothly, you must always be in possession of huge amount of money. Owing to the fact that it is more likely for customers to withdraw money than perform other financial transactions.
Basic Requirements to set up POS business
First and foremost, in order to begin POS business you must have a host.
- Host: Like the word implies, this is the main body in which you derive transaction services that you deliver to your customers. Examples if host includes, Capitec Bank, FirstBank, Quick teller, PAGA, etc.
2. POS Machine: POS business transactions are majorly carried out using the POS machine as we already know. You can get a POS machine by walking into any commercial Bank in your country and apply for one. It is free of charge in some countries provided you have reached a certain kind of relationship with your bank via your business transactions.
You might be pondering on what the Bank stands to gain, well the commercial Bank who provides you with this POS machine also makes money from every financial transaction carried out using their POS machine.
Commercial Banks charge a fixed commission between 0.25% to 1.5% on every transaction you make, this charge usually depends on the specific Bank. It is also compulsory you have an account with the Bank in question.
3. Targeted Location: When picking a location it is very important to make sure that it’s an area with low number of Banks or ATM points or better still no Banks and ATM points at all. Also put in perspective the structure of the type of shop you will make use of and factors such as space, furniture, dividers between you and your customers, security box maybe a safe or whatever security measure that best suits the area.
4. Advertisement: Advertisement here doesn’t really entails, videos, jingles etc but banners to draw customers. You need a large digital print and let this digital print be placed in an area of visibility to clearly draw the attention of customers.
5. Lastly, take action. There is a saying that an idea not executed 5 minutes after it comes to mind, dies a sudden death. Click on the link below to become a First Monie Agent.
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