Nigerian payments infrastructure company, Zone, has made headlines by surpassing ₦1 trillion in transactions on its blockchain network between November 2022 and December 2024. The network, which recorded a staggering 100 million transactions averaging ₦10,000 per transaction, marks the largest-scale use of blockchain-powered payments through automated teller machines (ATMs) in Nigeria.
Despite a declining trend in ATM usage, with transaction values dropping from ₦32.65 trillion in 2022 to ₦28.2 trillion in 2023, Zone’s blockchain solution has achieved remarkable progress. According to Obi Emetarom, CEO and co-founder of Zone, “If there was wider adoption of ATMs, [reaching ₦1 trillion in transactions] would have been faster. We used the ATM as a pilot to [introduce something new]. We didn’t want to start loading our system with heavy transactions, so we chose a transaction type that is manageable to build a credible system.”
From ATMs to POS Terminals: Expanding the Blockchain Network
Zone’s blockchain network has not only been designed for ATMs but also for Point-of-Sale (POS) payments via ZonePoS. The company expanded its network to POS terminals in June 2024, aiming to improve settlement rates and ensure compliance with financial regulations.
In a significant move, Zone partnered with the Nigeria Inter-Bank Settlement System Plc (NIBSS), the country’s payment switch, in August 2024. The collaboration allows NIBSS to log POS transactions on Zone’s blockchain ledger, effectively managing interactions between cardholders’ banks and POS terminals.
Although the partnership was expected to be fully operational by October 2024, delays occurred due to NIBSS’s institutional structure and regulatory concerns. The Central Bank of Nigeria (CBN) only approved the partnership in December 2024, leaving Zone to continue testing its network while ensuring data integrity.
NIBSS, being a regulated entity, is very institutional-based. There are strict processes to follow to make sure things go according to the project cycle that [NIBSS] has,” Emetarom noted.
A New Era for Blockchain Payments in Nigeria
Zone’s blockchain network operates with impressive efficiency, boasting a speed of 10,000 transactions per second (TPS). The company’s cautious rollout aims to establish credibility among regulators and financial institutions, a challenge that has historically hindered the adoption of decentralised finance solutions.
As Zone continues testing its network to ensure seamless integration with NIBSS, the startup also plans to extend its blockchain payment rails to facilitate account-to-account fund transfers. Although no discussions have begun with foreign financial institutions, Emetarom is optimistic about exporting the technology beyond Nigeria’s borders.
Zone’s journey showcases how blockchain technology can be adapted to traditional financial systems, offering faster settlements, improved data integrity, and a scalable solution for banks and merchants alike.
What will this blockchain milestone mean for the future of Nigerian finance?
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