How to Start a POS Business in Africa: A Complete Guide
By Joshua Oluwafemi – Financial Consultant & Startup Strategist
🧭 Introduction
Point of Sale (POS) businesses have grown into one of the most popular micro-enterprise opportunities across Africa. With the need for quick cash withdrawals, mobile transfers, and utility payments in underserved areas, POS agents now fill a vital gap in financial inclusion.
So, how do you successfully launch and run a POS business in Africa? This guide breaks it down step by step.
💼 What Is a POS Business?
A POS (Point of Sale) business involves offering financial services such as:
Cash withdrawals
Deposits and fund transfers
Airtime and data sales
Bill payments (electricity, cable TV, water, etc.)
BVN enrollment (in some cases)
As an agent, you earn a commission for every transaction you perform. The business is low-barrier, scalable, and provides daily income—which makes it very attractive for young entrepreneurs and retirees alike.
✅ Step-by-Step Guide to Starting Your POS Business
1. 📊 Conduct Market Research
Before you invest, assess your environment:
Is the area crowded or underserved with POS operators?
Are there banks or ATMs nearby?
What’s the average daily foot traffic?
What services do people need most (e.g., withdrawals vs bill payments)?
💡 Tip: Areas with limited banking infrastructure (rural or semi-urban) are most profitable.
2. 📝 Register Your Business (Optional but Recommended)
To build trust and possibly scale:
Register with your country’s corporate affairs body (e.g., CAC in Nigeria).
Open a business account for settlements.
Get a Tax Identification Number (TIN) if needed.
Helps when applying to bigger fintech companies or banks for support.
3. 🏦 Choose Your POS Service Provider
There are two main types:
A. Banks (Access Bank, First Bank, UBA, Zenith, etc.)
Offer free terminals (in some cases)
Lower transaction fees
Higher documentation requirements
Slower onboarding
B. Fintech Companies (Opay, Moniepoint, Palmpay, Kudi, Baxi, etc.)
Fast setup
Mobile-friendly agent apps
More flexible pricing
Easy to get terminals (with deposit or target-based loans)
⚖️ Compare based on: uptime, agent support, ease of use, commissions, and terminal quality.
4. 💳 Acquire a POS Terminal
You can:
Buy a terminal (₦20,000 – ₦100,000 or equivalent)
Lease or get it free with a deposit/target requirement
Use Android POS (more features) or Mini POS (more portable)
Be sure to test before accepting delivery.
5. 🏪 Choose a Strategic Location
Ideal spots include:
Market entrances
Bus stops
School gates
Residential areas with poor banking access
Busy roadside kiosks
If you don’t have a shop:
Set up a small kiosk or umbrella stand
Partner with an existing shop for space
6. 💸 Fund Your Agent Wallet
You need working capital of ₦50,000 – ₦500,000+ depending on:
Expected daily cash demand
Your agreement with the provider (some preload terminals)
Number of services offered
💡 Start small and grow your float as demand increases.
7. 🤝 Provide Excellent Customer Service
Trust is everything.
Dress well, be polite, be honest
Give receipts for all transactions
Have a signboard with your name and charges
Offer value-added services (e.g. quick recharge, bill payment)
Handle customer complaints quickly
8. 📈 Keep Proper Records
Track:
Daily sales & commissions
Cash flow (how much you withdraw and deposit)
Terminal charges or downtime issues
Customer complaints
Use simple tools like Excel, Google Sheets, or POS apps with dashboards.
🚫 Common Mistakes to Avoid
Not confirming transaction success before handing out cash
Using unreliable POS terminals
Ignoring network or power backup (e.g. no power bank)
Expand into mobile money or insurance if your provider allows
📝 Final Summary
Starting a POS business in Africa is a practical and scalable opportunity for anyone seeking a reliable daily income. With low startup costs, growing financial needs, and government support for financial inclusion, the potential is huge.
Just focus on:
Choosing the right location and provider
Offering honest, fast, and friendly service
Maintaining a reliable float and network
Scaling smartly as your customer base grows
With the right approach, you could move from a roadside kiosk to managing a POS agent network across multiple locations in 6–12 months.