Crypto
Zone’s entry into Nigeria’s payment ecosystem introduced a revolutionary concept: a blockchain-powered payment infrastructure designed specifically for financial institutions. In 2022, the company secured a switching and processing license from the Central Bank of Nigeria (CBN), making its solution Africa’s first regulated blockchain network for payments.
Amid a regulatory environment often sceptical of blockchain, Zone’s strategy aligned closely with local regulations, gaining the trust of major financial institutions. The company’s first proof of concept, an ATM switching use case, was widely endorsed by prominent institutions such as Zenith Bank and UBA, who were among the first to adopt the service.
Building on this foundation, Zone recently launched its decentralised POS Payment Gateway. This innovative solution leverages the company’s blockchain-powered infrastructure to address longstanding issues in POS payment processing, such as transaction failures, chargebacks, and chargeback fraud. Additionally, Zone entered a strategic partnership with the Nigeria Inter-Bank Settlement System (NIBSS), which allows NIBSS to perform Payment Terminal Service Aggregator (PTSA) functions directly on Zone’s network.
This partnership integrates NIBSS’s oversight capabilities with Zone’s decentralised framework, streamlining compliance for POS providers while ensuring a seamless payment experience for financial institutions, merchants, and consumers.
By aligning with regulators and banking giants, Zone effectively positioned itself as a trustworthy, forward-thinking partner in Nigeria’s financial services industry.
Challenges to Zone’s ascent in Nigeria’s payment landscape
One of Zone’s initial challenges was crafting a blockchain solution that could satisfy Nigeria’s regulatory requirements without compromising its decentralised potential. Given the prevalent scepticism towards blockchain due to its association with unregulated solutions, Zone strategically adopted a semi-decentralised structure, blending regulatory oversight with blockchain’s transparency and efficiency.
Obi Emetarom, as CEO, shared in an interview with Techpoint Africa, “We began with a somewhat centralised approach to meet regulatory expectations, yet the architecture is designed to support decentralised expansion as we move forward.”
This innovative balance has allowed Zone to build a solution that remains both compliant and forward-thinking. Although this approach gave Zone credibility, Emetarom still sees the potential for Zone to become fully decentralised in the future.
Securing the commitment of Nigeria’s leading financial institutions presented another challenge. For a payment network like Zone, credibility and strength come from a robust base of network participants; however, getting banks, fintechs, and other financial institutions to join required overcoming the classic “chicken-and-egg” dilemma. Banks were hesitant to adopt a new blockchain network without seeing other major players involved.
Zone’s approach to this hurdle involved persistent engagement, showcasing its commitment to regulatory compliance, security, and interoperability. Over time, these efforts helped
