Fintech startups based on digitising money and financial inclusion are fueling at the grassroots a new type of business in Nigeria. Young people all over Nigeria are setting up shops in busy streets to run electronic money transfer business known as POS business.
The pace at which POS shops are emerging in Nigeria is comparable to the rise of phone calls centers at the inception of GSM cellphone communication in Nigeria. With signature umbrellas distributed by GSM network service providers like Glo and MTN, young people set up mobile phone call centres in front of their homes, by busy roads, junctions, in higher institutions, and close to private and government offices.
Initially, security was the primary hindrance to starting a POS business in Nigeria. Most pioneering POS business entrepreneurs have had to locate their shops adjacent or opposite police stations. Many felt safe siting their businesses in or close to mini markets (this is called mami market in Nigeria army barracks) in military barracks.
There were many skeptics in the beginning. But many Nigerians also wanted to know if they can use the POS terminal to send money to their bank accounts. Receiving deposit alerts from their banks were enough to convince them.
POS terminal became a convinient means of sending and receiving money because many Nigerians had no bank accounts. They can easily walk down to a shop nearby and send money to their children, wives, friends, parents or clients without filling forms or signing documents.
Proximity to banks was one of the factors responsible for the proliferation of POS businesses in Nigeria. Certain small towns and villages are very far from the nearest commercial bank.
POS business in Nigeria has assumed a different dimension. People are practically setting up POS terminals opposite commercial banks. Due to long queues, absence of cash, and network failure in Nigeria banks ATM, mobile POS business operators are found hawking their services by the gates of commercial banks.
More information is available in how to start POS business.