Zone Unveils New Blockchain Solution for Enhanced Security
Zone, an African payment infrastructure company, has introduced a blockchain-based payment gateway to address the issue of failed point-of-sale (POS) transactions in Nigeria. This new system aims to reduce transaction failures, minimize chargebacks, and offer quicker settlements for merchants, according to Olayiwola Osoba, the Vice President of Marketing and Corporate Communications at Zone.
This initiative comes in response to the increasing demand for efficient and secure payment methods in Nigeria. Failed POS transactions have been a long-standing problem, causing financial losses for merchants and inconvenience for customers.
Osoba explained that the failures are often due to the limitations of centralized systems. Zone’s solution, powered by blockchain, aims to overcome these issues by using a decentralized approach. In centralized networks, high transaction volumes can overwhelm the infrastructure, leading to failures. Zone’s blockchain solution aims to prevent this by decentralizing the process.
Zone is a network of banks and fintechs using blockchain to facilitate both domestic and international payments. The new POS payment gateway builds on the success of Zone’s ATM transaction processing service, promising reliable and smooth payments across various channels.
The core of Zone’s solution is its regulated layer-1 blockchain network, which offers a complete payment processing solution for banks and fintechs using POS terminals. The company, a CBN-licensed payment switch operator, claims it can directly route transactions to issuers while complying with regulatory requirements. This promises greater transaction reliability, same-day settlements, and a robust system to eliminate chargebacks and fraud.
Zone’s CEO and co-founder, Obi Emetarom, highlighted that this launch is significant not only for the company but also for the financial institutions and their customers. The new POS Payment Gateway supports financial inclusion and the future of digital payments in Africa. It represents a step towards a world where instant payments are possible for anyone, using any payment method and currency.
As of March 2024, the Nigeria Inter-Bank Settlement System reported that there were 2.68 million POS terminals in Nigeria, reflecting significant growth in digital payments. This increase is driven by the rising adoption of POS terminals by merchants and individuals, the shortage of ATMs, and the convenience of cash withdrawals through POS agents.
Zone connects acquirers directly to issuers through its decentralized payment switching network, eliminating chargebacks and chargeback fraud by automatically refunding customers for unsuccessful transactions and rejecting fraudulent chargebacks in real-time. This ensures trust and satisfaction for all parties involved. Payments through Zone’s system are settled on the same day for each transaction, providing faster access to funds for agents and merchants and making it easier to track transaction values.
