To make this clearer to all; I will like to explain what makes this business a mobile banking business. This is important because some people understand this to be a POS (point of sale) business. So, if you are looking for “how to start POS business,” this is the post for you.
Why Is This A Mobile Banking Business?
The answer is simple; because it does all transactions that can be done in the bank. Yes, you read correctly. With this guide; you should be able to do the following:
- Open a bank account
- Do bank deposit
- Do bank withdrawal
- Transfer fund from one bank to another
- Pay the following bills e.g PHCN, Dstv, Gotv, Startime, Spectranet, Swift, Tax, and many more
- You can also give a loan
You see, one of the businesses that you can do to make steady income is “money business;” the banks and the Northerners understand this perfectly, with money business, your future is secure – trust me.
So, Why Is This A Good Business?
There are so many reasons why this is a good business, but I am going to mention a few here.
- There is a limited number of banks: As a matter of fact, there are some areas where you have to travel to get a bank to operate.
- Long ATM queue: If you have ever used an ATM in Nigeria; you will understand how difficult it could be sometimes. There are even sometimes when you get to the ATM but won’t be able to cash out, because there was no money in that particular ATM machine.
- Limited ATM Machines: Sometimes, you will have to travel a long distance to even see a working ATM machine.
- Off-work hour operation: In Nigeria, the bank closes by 4 pm. So, you won’t be able to do any transaction if you do not have ATM, Mobile App, Internet Banking. This is also the case when you have the money at hand, instead of the bank. Often times, I have to go and use a nearby mobile banking agent because I have the money at hand, and not in my bank account.
- Source of income: It is another awesome source of income.
- Demand is high: At the moment, this business is not yet crowded. So, there is no problem of low or no sales.
Challenges Mobile Banking/POS Business
There is no need to pretend this business has no downside; just like every other business, it has its own downside. So that you can prepare yourself against these possible challenges.
- Inadequate Power Supply: In case you don’t know; your POS machine uses a battery, and that needs to be charged. So, if you don’t have electricity or generator, then this business might not be right for you.
- Network issues: This shouldn’t be new to you na; at least, na naija we dey. Poor network service is another challenge of this business; as you need a network to operate. Unfortunately, this issue is out of your control; it is solely the responsibility of the bank that owns the POS. So, be ready to render a lot of apology to customers when there is network failure. Although, this is better than before. However, you can reduce or control this by having two POS from different banks.
- Mobile phone advancement: It is true that you can do most of this on your phone; even if it’s a touch light phone. However, what will you do if you have 5,000 at hand to pay a friend by 7 pm? Besides, not everybody can use this phone facility, and not always will you be having money in your bank account.
- Inability to control crowd: This also happens in the bank; so, don’t expect to be spared. You must keep persuading your customers for them to do business with you. Except you have a very conducive place with AC and chairs.
- Robbery: To be honest, people can do away with your money; that is why you need to operate this business in a safe environment.
How To Start A Mobile Banking/POS Business
Step 1: You will need a secure shop in a busy location; so, if you don’t already have one; you will need t get one; as it will be inspected by the bank agent before approving your application.
Step 2: You will need a business name; so, if you are yet to register your business, I suggest you get a friend who already did to help you, as it will be required.
Step 3: You will need a minimum of 100,000 as a minimum operating balance before you can start this business. At least, I know of First Bank.
Step 4: You will need to have an account with any desired bank; this is a special account for this business, but they can also use your personal account if you already have one.
Step 5: Go to your desired bank and obtain the necessary forms. Just tell them you want to operate a mobile banking business; they know the right forms to give you. More so, it is important to note, not all banks are doing this in Nigeria at the moment. But I know First Bank, Access Bank, and Eko Bank are offering this service. However, you can find out from your bank or open an account with any of the above banks.
Step 6: You should be able to receive your POS machine from the bank within 14 days, with other promotional material, and start your business. In case you don’t want to collect from banks; you can easily purchase the machines from agents who are licensed to sell them. The cost of POS machine used to be between #90,000-#100,000 but has now dropped. All the services you plan to do are already programmed into it.
Please, drop all questions in the comment below, and I will respond as soon as possible. I hope this helps someone today.