Zone, a leading payment infrastructure company in Africa, has partnered with the Nigeria Inter-Bank Settlement System (NIBSS) to address the persistent issue of failed point-of-sale (POS) transactions in Nigeria through an innovative blockchain solution. This initiative aims to enhance the reliability and efficiency of electronic payments in the country, which has been plagued by high rates of transaction failures, leading to significant revenue losses for merchants and frustration for consumers.
The newly launched blockchain-powered payment gateway is designed to minimize failed transactions and reduce chargebacks while ensuring faster settlements for merchants. Olayiwola Osoba, Vice President of Marketing and Corporate Communications at Zone, emphasized that the traditional centralized systems often struggle under high transaction volumes, resulting in failures. The decentralized nature of blockchain technology is expected to alleviate these challenges by providing a more robust infrastructure for processing payments.
This collaboration comes at a crucial time as Nigeria's cashless economy continues to expand. Recent reports indicate that cashless transactions have surged, with a 45.41% year-on-year increase, totaling N39.58 trillion in electronic payments. However, the rise in transaction volume has not been matched by improvements in payment infrastructure, leading to a significant number of failed transactions across various channels, including POS terminals.
Zone's blockchain solution is built on a regulated layer-1 blockchain network, which aims to provide a comprehensive payment processing framework for banks and fintechs utilizing POS terminals. This initiative follows the successful implementation of Zone's ATM transaction processing service, which has already demonstrated significant improvements in transaction efficiency and customer experience.
The partnership between Zone and NIBSS is seen as a pivotal step towards enhancing Nigeria's payment landscape, making it more secure and efficient. As the country moves towards a more digital economy, the adoption of blockchain technology in payment systems could play a vital role in reducing transaction failures and fostering consumer confidence in electronic payments.
