(From left) Ngover Ihyembe-Nwankwo, NIBSS; Obi Emetarom, Zone; Premier Oiwoh, NIBSS; and Wale Onawunmi, Zone.

Zone Payment Network, a regulated blockchain network in Nigeria, has partnered with the Nigeria Inter-Bank Settlement System (NIBSS) to improve POS payment processes by integrating blockchain technology.

This comes in response to the Central Bank of Nigeria’s (CBN) regulations, which require financial service providers to route their POS transactions through a Payment Terminal Service Aggregator (PTSA). NIBSS is the sole PTSA in the country.

Obi Emetarom, CEO and co-founder of Zone, added: “By harnessing blockchain technology, we are setting a new standard for reliable, frictionless, and universally interoperable payments.

“This is a significant shift away from the traditional systems of payment processing that rely solely on a central hub to process transactions, the introduction of the decentralised card routing system will distribute the processing across a blockchain network,” he added.

The partnership has introduced a decentralised card routing system that allows banks and fintechs to handle transactions between POS terminals and cardholder banks while remaining compliant with CBN regulations.

The partnership will allow participating financial institutions to view the blockchain ledger, which contains all recorded transactions. Banks and fintechs will use this data to reconcile transactions, settle disputes quickly, cut customer wait times, and reduce chargeback and other POS-related fraud.

“This blockchain-based approach is designed to boost the security and reliability of POS transactions in Nigeria as it enhances security, speeds up transaction processing, reduces costs, and ensures regulatory compliance by recording and verifying each transaction on a secure ledger,” said Premier Oiwoh, CEO and MD, NIBSS

He added that the alliance will help to improve operational efficiency, cost savings, and enhance financial inclusion, saying that he hopes the move will help to push Nigeria as one of the leaders in the global payment space.