The recent shift to Virtual Topup (VTU) has raised some doubt in the mind of the people that Recharge Card Business is no longer profitable or that the era of physical or logical voucher is numbered.
NCC recently released an information that the number of active telephone lines in Nigeria are now 150 million while the internet users are now 90 million subscribers.
The implication of this new growth in the telcom sector is that more people will buy airtime for top-up. The sales of both vtu and logical voucher will increase.
The USSD and ATM platform by commercial banks is the most viable alternative to the subcribers in the future. However, the demand for the physical card wouldn't decrease. A recent observation from the distributions of the physical vouchers has shown that demand remain same despite the fact that the vtu platform is growing.
I have been receiving calls from start-up thinking of venturing into the rechard card business. Their concerns is that the Recharge card business is no longer viable because of the vtu platform. My answer to them is that at least in the next five years, the demand for physical voucher will still remain same. Though, there will be reasonable growth on the vtu platform, that wouldn't lead to decrease in physical voucher rather the gap will be filled by the growing telephone lines.
Therefore, are you a start-up looking for business to do in lagos, with #200,000 capital, profit of #70,000 monthly is guaranted. Kindly look for a sub-dealer, negotiate discount and locate a highly populated areas and supply the retailers. The risk is zero because all the card bought must be sold.