PoS agents need a better alternative to maximise their profits…
If you live in Nigeria and have transacted or interacted with any PoS agent, you’d find that lamentations from them are not unusual. They are never shy of airing their dissatisfaction with the business modalities—usually around high losses and low profit—for anyone willing to lend an ear.
In truth, Point of Sales (PoS) transactions in Nigeria can be problematic. Reverse, delayed or unsuccessful transactions which initially indicated success are common problems that lead to revenue loss for many operators. There is also the challenge of realising tiny profits due to high chargeback rates from banks issuing PoS terminals to agents.
For customers, the frustrations are just as pronounced. Multiple deductions from their account balance arising from several failed attempts with their bank card are some of the most common causes of emergency bank visits, with chances for immediate resolution unlikely. Yet, PoS transactions, due to the convenience it affords many, remain one of the most commonly adopted transaction mediums.
PoS activities have seen an astronomical rise in Nigeria over the last few years. Recent Nigeria Inter-Bank Settlement Systems (NIBSS) data shows that the value of transactions carried out over PoS across the country in the first 9 months of this year hit N6.05 trillion.
The massive increase in the volume of PoS transactions is unsurprising. Many retail businesses, in trying to reduce cash handling to the barest levels, have continued to adopt the service as an easier way to collect payments for goods and services, while PoS merchants use it to allow customers to make withdrawals, deposits, or transfers without going through the rigours of queuing at ATM points.
But the unfriendly factors in the business, as highlighted, are known to draw common questions from the lips of operators. Questions such as: How do I earn more as an agent? How do I reduce the failure rates? How do I satisfy my customers better?
What are Bani’s answers to these questions?
A strategy to adopt as a PoS agent to reduce high transaction failure rates would be to ditch using bank cards altogether and adopt unique virtual accounts for bank transfers. This way, you will be able to provide account numbers generated online to carry out every transaction instantly and at very little cost.
Bani’s unique multiple bank options solution is also designed to allow you to provide virtual accounts from various tier 1 banks in Nigeria for your customers to choose from.
What are the plus-sides to this model for PoS agents?
This model has numerous benefits for you if you have little capital but a great desire to grow your business. You will be able to:
- Reduce high transaction failure rates
By generating virtual accounts, you will successfully reduce the high chances of failed transactions associated with using bank cards, as the accounts are online and largely unaffected by technical inter-bank network issues.
- Reduce charges and increase profit
Virtual accounts are used to transact in place of a real bank account, therefore standard bank fees and rates do not apply to them. This significantly reduces the charges associated with using real accounts for transactions and ultimately, increases your profit.
- Reduce high set-up cost
PoS operators are known to spend a significant sum of money to set up shop and start their business. But the cost and stress associated with securing a terminal from banking institutions will be eliminated with Bani’s virtual accounts.
With a custom flyer and umbrella in choice locations, you can immediately begin to run your profitable business with ease.
In the last nine months, PoS transactions in Nigeria have shot up by 24.3 per cent, with a total of 568,488 additional PoS terminals, and financial experts project further growth as more Nigerians are going cashless.
Whether you are looking to start a PoS business or improve on the service you currently provide, now is a great time to adopt new methods that will satisfy your customers and boost your growth.
