The cash back business popularly known as POS business, is a legitimate way to make money in Nigeria. However, it’s best done in areas where there is little or no bank presence, and and places where ATMs are not enough to serve the community’s financial needs.
You can also call it agent banking business, and it’s an extension of services offered by financial institutions to enable easy service offering to a wide range of customers without the capital intensive venture of setting up new branches. Now, fintechs and banks are making it more easy and less expensive through cash back vendors for people to have access to financial services as close to their comfort zone as possible.
Are you considering to start this cash back business? Then continue reading this artivle to get a very comprehensive guide on how to start a cash back business.
Cash back or POS (Point of Sale) business helps vendors offer services like funds transfer and withdrawal, and even deposit, airtime sales, bill payments like GOTV, DSTV, Startimes, PHCN, and other utility bills and subscriptions. Cash back business is used in several places where goods and services are sold or rendered; places like retail shops, offices, supermarkets, fuel/gas stations, pharmacies, eateries, etc.
By helping to create easier access to financial services in localities or areas with low bank penetration, this cash back business has given agents/vendors a legit means to earn some extra income, and also drive traffic to their already existing businesses. This is especially true for the vendors who have a primary business and have added the cash back business as an extra extension of their services. As a result, they are sometimes called banking agents.
Although not serving as direct employees of a bank, cash back vendors deliver banking services on behalf of banks or with the aid of financial technology firms like QPay. It is a very profitable business and one of the best means of getting passive income if done right.
Are you looking to start a cash back business? This article contains all the information you need to get started as a cash back vendor as soon as possible.
Cash Back Business
The cash back business, also known as agent banking officially began in 2013 after the Central Bank of Nigeria rolled out its guideline on the operations and management of the business. Since then, it has become one of the retail channels of several commercial banks to make their banking services reach a large number of people in the most remote parts of the country where they cannot serve or set up a branch.
A banking agent or cash back vendor owns and operates a retail outlet. They help facilitate financial transactions and allows clients to deposit, withdraw, transfer funds, pay bills, recharge airtime, inquire about customer’s account balances, and other related serTrust
This cash back business would succeed more in rural areas, semi-urban centers, unbanked and underbanked communities.
Or even over populated city centers where the available ATMs and over the counter banking is overwhelmed by the sheer population, and people are looking for faster means of carrying out their transactions. As a cash back vendor you can easily win even in a neighborhood right beside a bank if the conditions are set right.
If you have an existing business running in a suitable location, you can easily increase your earning potential by simply ordering a POS machine from Qpay with as low as 10,000 deposit. This POS machine would not just serve as a means to collect more payments for your already existing business, but also a means to increase your earning potential by helping people access financial services. Doing this cash back business as an extension of an existing business means that as more cash comes in as people patronise your business, this money is easily transferred back to your bank account when people come to you requesting to make withdrawals through your POS/cash back business.
This improves your security as a business because you would never really have excess cash sitting around in your business premises for hoodlums to cart away with if for any reason you are attacked.
Now let’s talk about the few steps you need to take to get started.
Step 1: Have An Existing Business
The cash back business is about finance and must, therefore, be approached with much care. The Central Bank of Nigeria is very conscious of the kinds of businesses that qualify to be agents. So, extra care is taken by commercial banks before they authorise you as an agent for their retail banking. However, going through financial technology companies like QPay, you can easily avoid these stringent qualification rules.
To be eligible to be a mobile banking agent for a traditional bank, you must have an existing business operating for at least for 12 months. Also, you must have a shop or office location from which you operate. Then, you must be registered with the Corporate Affairs Commission as;
1. A Cooperative Society
2.A Public Entity
3. A Partnership
4. A Limited Liability Company
5. A Sole Proprietorship business
6. A Trust or any other entity aside religious organizations or NGOs.
But as a QPay agent, all you really need to have is BVN. Yes we would ensure or verify that you run a viable and legal business, but at QPay you don’t need to be a registered business or have any of the hard to get documents required by banks to give you a POS machine.
Step 2: Approach QPay.
At QPay we make it even easier. You do not need to come to our office location to start your application process, you do not need to find an aggregator either. If you know a QPay aggregator near you, then that’s fine too, but you are best off simply downloading the QPay app and following these 4 simple steps.
Follow the link and download the app and sign up
2: Apply for a pos (go to the receive Tab to see where to do this)
3: Create a POS profile (I.e username and password) (from settings)
4: proceed to fund your account with a security fund of #10,000. This sum covers for 33days payment for POS (N300 daily)
Step 3: Get The Equipment
Once your application is considered, and verification checks are made over calls, you are sent a POS machine right to your doorstep if you are within Lagos. Or get it at the nearest park to you depending on your chosen logistics method. Lagos and Ogun state residents can get their POS machines in as little as 2 days flat, depending on the qeue at the time, time of application and how far from the office location they are. But QPay POS machines always arrive very fast.
Step 4: Location
For best results in the business, it’s advisable to choose locations with limited banks penetration or places with fewer ATMs as compared to the number of people who wish to use them. Also, choose strategic locations like s bus stop, public market, event centers, etc, basically places with a reasonable amount of foot traffic. This would keep you in the line of sight of people in the active times or parts of their day. These factors will greatly affect your daily profit.
Once you have a good location, you can construct a shop but create enough spaces for swift movement for you and the customers, have in mind that this would be the place from which you would carry out all your transactions, therefore, you would be spending a huge chunk of your daily active hours here. Have a banner displayed at the entrance or at a position most visible to passers by to indicate the cash back services you offer.
Then, for the sake of security, you can have a special purse/pouch around your neck or waist to keep your cash, or a safe with a solid lock to prevent theft and people with picky fingers from robbing you.
Also, whenever you notice that an ATM is not functioning either as a result of network failures or dried up cash reserves, you can go there to offer your service to the people who would be coming there to make transactions but would be disappointed. Be their saving grace and earn from it.
Step 5: Render Services
The cash back business is rendered via POS terminals, your mobile phone, and your QPay mobile wallet for real-time transaction processing.
As soon as you have these, the next step is to start providing the following services;
1. Cash deposit.
2. Cash withdrawal.
3. Funds transfer services (local money value transfer)
4. Bill payment (utilities, airtime, TV subscriptions, e.t.c)
To get started with QPay POS, click this link to get the QPay app on Google playstore from which you can order for a POS right now. Or you can reach us on 09075452301 and we will tell you all it takes to get a QPay POS.
MPOS
QPay Wallet App
Enterprise Solution
Android POS