POS Merchandise: A Side Hustle to Consider?
Transactions via the Point of Sale (POS) services have soared in the last 6 years in Nigeria.
This indicates the growing adoption of POS as a payment method and suggests it may be a viable side hustle.
Considering the current economic climate, the expanding reach of POS services in augmenting the conventional banking gaps also presents new opportunities for people intending to start micro businesses.
Sounds good?
That is being pocket smart!
The volume of transactions processed via Point of Sale (POS) services in Nigeria has steadily increased, reflecting demand for POS services alongside other payment methods such as internet transfers, ATMs, cheques, and others.
In the last 6 years, the number of transactions via POS increased by 384% from 286 million in 2018 to 1.3 billion in 2023.
The per capita volume of transactions processed through POS has also steadily grown in the last 6 years.Â
The average Nigerian increased their POS transactions from 1.4 per person in 2018 to 6.2 per person in 2023.
The value of transactions processed through POS also soared in the same period. It has risen from N2.3 billion in 2018 to N10.7 billion in 2023.Â
Regarding the value of transactions, the average per capita transaction processed through POS systems quadrupled from N11,708 per person in 2018 to 47,974 in 2023.
As more businesses adopt these systems, we can expect this trend to continue.
POS services in Nigeria continue to rise, becoming increasingly sought after in both rural and urban areas.
POS is an agent banking system that provides alternative financial services to people outside the traditional banking system and automated teller machines (ATMs). It offers services like money transfers, withdrawal of cash, deposits, and payment of bills such as utility bills, data, and cable subscriptions.
The volume of POS transactions increased in the last 2 years as much as internet transfers, making it the second most used payment option in Nigeria.
The transaction patterns during this period reflect a dynamic shift in the e-payment landscape. While internet transfers remain the predominant payment choice, POS is steadily solidifying its position as a viable alternative.
The number of POS terminals that were registered in the country also increased by 172% from 1.4 million in January 2022 to 3.7 million in March 2024.Â
Do you notice a correlation between the increased POS transactions and the recent growth in the registration of POS terminals?
That hints at something.
The number of registered POS terminals per 100 people also rose from 11 in 2022 to 16 in 2023. As transaction volume grows, the demand for more terminals for deployment also rises.
POS Side Hustle: What to Consider to StartÂ
The POS business is extremely competitive, with numerous new entrants emerging almost daily. Strategically locating the POS outlet is crucial for success. Proximity to bus stops, marketplaces, and distance from banks are important factors to consider when selecting a location for a POS business.
When starting, pay close attention to cash transactions and ensure good money management. Stay vigilant against theft and fraud by practicing security measures and conducting transactions carefully.
Another appealing aspect of this business is that it doesn't require one’s full physical presence. You can monitor all transactions from wherever you are, and make frequent audit check-ins through your proxies.
While people in full-time employment can recruit people to run this on their behalf, small businesses can easily add agency banking to their services
As digital payment infrastructure continues to expand, the role of POS systems will likely become even more pivotal in facilitating secure and efficient transactions.
Besides the POS Agent Banking business option, there is the need to pay close attention wherever you are to identify a need that requires a solution you can provide that can significantly enhance your income prospects.
Thank you for reading this edition of Pocket Science. It was written by Funmilayo Babatunde and edited by Oluseyi Olufemi.