In this article, we hope to consider the immense benefits of the Point Of Sales, P.O.S System currently operational in Nigeria. It is critical to mention here that P.O.S was introduced to the market in 2013 and has since become an effective means of conducting transactions in banks, stores and other similar places of business.
P.O.S, which can also be referred to as Point Of Purchase, P.O.P Machine, is a form of agent banking that has to do with a transaction from a portable hand-held machine that permits local debit cardholders to pay for goods purchased or services rendered.
Here Are Some Benefits Of P.O.S Systems
Because of how critical the P.O.S Machine is to customers within the society, more are springing up in communities, neighbourhoods, and even our immediate surroundings. The Machine has made it possible to:
- Lessen the burden of moving cash about: The debut of the P.O.S device reduced the risk people took when conveying money from one location to another. Today, all an individual needs to do is move around with a Debit/Credit Card, in the sense that many P.O.S stands are situated almost everywhere to handle transactions.
- Instant Notification: The Machine also grants immediate notification/confirmation of goods and services payment. This is why you get an alert whenever you make a cash withdrawal or transfer with a P.O.S Agent.
- Pay Bills: Aside from the points mentioned above, P.O.S creates a business avenue where bills are paid without going directly to designated offices of service providers. An Instance here is the purchase of call cards, subscription payments for satellite televisions. It can also collect school fees, rent, tax, donations, to mention a few.
- Make Profit: A business that doesn’t bring returns should be reanalyzed immediately to determine where the problem is coming from. If nothing can be done about its growth, then it should be discontinued entirely. The P.O.S venture is a profitable venture that should be carefully run. One important lesson to learn here is that business operators should avoid collecting high charges from customers or patronage will be affected drastically, but with the standard fee charged to customers, P.O.S Operators could still make enough gains.
- Commissions: Commissions is mainly how profit is made from this business. The more relevant, available and trustworthy you are to your customers, the more likely you will be financially stable and eventually delve into complementary business opportunities. In the practical sense, let’s say your store is located in a commercial spot where other businesses thrive, there is the possibility that you will be getting up to thirty-five customers in a day. Supposing you receive a basic charge of one hundred and fifty thousand nairas and multiply by the number of customers that same day, this means your daily revenue would be five thousand, two hundred and fifty nairas. It’s left for you to do the math and determine how much it amounts to by the end of the month.
Looking at some valued points made by a business expert, Eno Johnson, about the P.O.S subsector in the banking industry, she said it’s a very lucrative business, and reiterated that there is a high demand for all the services provided via the machine.
The demand, in her opinion, translates to massive overturning which guarantees regular earnings once there is a commitment, adding that the business is sustainable because the consumption of these services will always be needed.
The notable advantage of the point of purchase system is that it saves people time and money. The time that would have been expended carrying out transactions inside the bank and cash spent on transportation is reserved; meanwhile, a small percentage is only paid as commission to the P.O.S Operator for service rendered.