With the growing adoption of cashless transactions and the increasing need for convenience in Nigeria, the Point of Sale (POS) business continues to thrive. Whether you’re an aspiring entrepreneur looking to enter the POS business or a customer trying to find the most affordable option, understanding the charges and prices of various POS services is essential.
This article provides an in-depth guide to the cheapest POS charges in Nigeria for 2025, the devices available, and their respective advantages and disadvantages.
Table of Contents
What Are POS Machines?
A POS (Point of Sale) machine is a device that allows businesses or agents to process financial transactions, such as cash withdrawals, deposits, and transfers. In Nigeria, POS services bridge the gap in banking infrastructure by offering convenient financial services, especially in underserved areas.
Types of POS Machines in Nigeria
1. Mini POS Devices
- Features: Resemble calculators with narrow display screens and basic functions.
- Best For: Basic transactions like withdrawals and deposits.
- Example: Opay Mini POS
2. Traditional POS Machines
- Features: More robust, featuring advanced functionalities such as receipt printing.
- Best For: High-volume businesses.
3. Android POS Machines
- Features: Resemble a 7-inch smartphone, offering advanced functions like inventory management and app integration.
- Best For: Businesses requiring more detailed operational features.
Cheapest POS Charges and Prices in Nigeria
Here is a detailed comparison of the charges and prices of popular POS machines in Nigeria. With this, we can get the cheapest POS charges.
| S/N | Brand | Price (₦) | Deposit/Transfer Charges | Withdrawal Charges |
|---|---|---|---|---|
| 1 | Moniepoint | ₦20,000 | ₦35 | 0.5% for amounts below ₦20,000 |
| 2 | Opay | ₦40,000 | ₦20–₦30 for amounts below ₦30,000 | 0.5% for amounts below ₦20,000 |
| 3 | Palmpay | ₦30,000 | ₦20 | 0.5% for amounts below ₦20,000 |
| 4 | Paycentre | ₦25,000 | ₦10.5 for ₦1,000–₦5,000 | 0.75% |
| 5 | Flutterwave | ₦30,000 | ₦45 | 1.4% |
| 6 | Kudi | ₦25,000 | ₦25 | 0.6% for amounts below ₦25,000 |
| 7 | Baxi | ₦30,000 | ₦30 | 0.55% |
| 8 | Bankly | ₦15,000 | ₦35 | 0.3% for amounts below ₦20,000 |
| 9 | Kolomoni | ₦15,000 | ₦30 | 0.5% for amounts below ₦20,000 |
| 10 | Kashzoo | ₦25,000 | ₦30 | 0.5% |
| 11 | Payforce | ₦25,000 | ₦25 | 0.3% for ₦5,000–₦16,500 |
Benefits of Using a POS Business in Nigeria
1. Employment Opportunities
The POS business has created jobs for thousands of Nigerian youths, helping to combat unemployment.
2. Convenience
Customers can easily withdraw or transfer money without visiting a bank or ATM.
3. Accessibility
POS agents bring banking services closer to underserved areas, reducing the need for long-distance travel to bank branches.
4. Time-Saving
POS transactions are quick, allowing customers to avoid long queues in banks.
5. Additional Revenue Streams
POS operators can earn income through commissions on withdrawals, deposits, and other financial services.
Challenges of POS Business in Nigeria
Even if you get one of the cheapest POS charges or one with low charges, you can’t escape some of the challenges of starting a POS business. They are:
1. Security Risks
Due to the large cash handling involved, POS agents are often targets of robbery.
2. Network Failures
Inconsistent network services can delay or fail transactions, frustrating both agents and customers.
3. Power Supply Issues
POS machines require consistent charging, and Nigeria’s unreliable electricity can hinder operations.
4. Fraud Risks
Some fraudulent agents or machines can compromise customer card details.
5. Competition
The POS business is saturated in many areas, reducing profit margins for operators.
Tips for Starting a POS Business in Nigeria
- Choose a Reliable Service Provider
Select a POS brand with competitive charges, excellent customer service, and reliable network connectivity. - Select a Strategic Location
Operate in areas with high foot traffic but low competition, such as markets or residential neighborhoods. - Ensure Proper Security
Invest in a secure setup for your cash and ensure your POS machine is genuine. - Understand the Charges
Do not just go for the cheapest POS charges. Be clear about the commission structures of your chosen POS provider to maximize profits. - Have Backup Systems
Use multiple POS machines or partner with different service providers to minimize downtime due to network failures.
POS Business: A Growing Alternative to ATMs
The POS business has become a reliable alternative to ATMs, offering services even in remote areas. Its accessibility, convenience, and affordability make it popular among customers and operators alike.
To ensure success, focus on providing excellent service, choosing an affordable and reliable POS brand, and operating in strategic locations. With POS machines, financial transactions are brought closer to the people, fostering a more inclusive financial system in Nigeria.
FAQs on Cheapest POS Charges in Nigeria
Which Brand Offers the Cheapest POS Charges ie withdrawals?
Brands like Bankly and Payforce offer some of the cheapest POS charges for withdrawal, as low as 0.3% for amounts below ₦20,000.
What is the Average Cost of a POS Machine in Nigeria?
The average price of a POS machine ranges between ₦15,000 and ₦40,000, depending on the brand and features.
Can POS Operators Negotiate Charges with Customers?
Yes, especially for higher withdrawal amounts, many POS agents allow room for negotiation.
What Happens If a POS Transaction Fails?
Failed transactions may require manual reversal. Contact your POS provider’s customer care for resolution.
Is the POS Business Profitable in Nigeria?
Yes, the POS business remains highly profitable, particularly in underserved areas with high demand for financial services.
Conclusion
POS services have revolutionized the financial landscape in Nigeria, making banking services accessible to millions of people. By choosing a provider with affordable charges and offering excellent customer service, you can thrive in the POS business. Whether you’re a customer or a budding entrepreneur, understanding the charges and benefits of POS services can save you time and money.