Zone Payment Network Limited, previously known as Appzone, has announced a strategic partnership with the Nigeria Inter-Bank Settlement System (NIBSS) Plc, the National Central Switch, and the country’s first Payment Terminal Service Aggregator (PTSA). This collaboration is poised to significantly enhance the interoperability of the Point of Sale (POS) payment value chain in Nigeria by integrating advanced blockchain technology.
The partnership comes in response to the Central Bank of Nigeria’s (CBN) efforts to improve transparency and efficiency within the country’s payment system. As part of these efforts, the CBN has introduced the Payment Terminal Service Aggregator (PTSA) license category, which requires all licensed financial service providers to route their POS transactions through a PTSA. This regulation aims to optimize the payment experience for both consumers and merchants, streamline reconciliation processes, and reduce operational costs and financial losses for banks and other financial institutions.
The collaboration between NIBSS and Zone is expected to revolutionize the POS payment infrastructure by leveraging blockchain technology to facilitate seamless transaction processing between banks and other financial service providers. The use of blockchain will enhance the reliability and security of transactions, ensuring that they are processed efficiently and securely. One of the key features of this partnership is the introduction of decentralized card routing, which will enable banks and fintech companies to route cards between POS terminals and cardholder banks while remaining fully compliant with payment switching and PTSA regulations as stipulated by the CBN.
A notable aspect of this collaboration is the automated resolution of chargebacks, a process that will allow refunds for declined transactions to be processed within minutes. This feature will eliminate the need for manual intervention and reduce the inconvenience for customers who would otherwise need to make frequent visits to banks. Additionally, the system will validate the final transaction status in real time, enhancing liquidity and improving overall business operations. For merchants, this timely access to funds is expected to be a significant improvement in their day-to-day financial management.
As Nigeria continues its transition towards a more digital society, the enhancements brought about by this partnership will greatly improve the overall experience for cardholders. The implementation of blockchain technology is anticipated to provide more reliable services, faster response times, and reduced transaction processing costs. These improvements are crucial in supporting the expected increase in transaction volumes as the country’s digital economy expands. Additionally, agent networks are likely to benefit from increased revenue opportunities, further incentivizing the expansion of financial services across the nation.
Reflecting on the directives issued by the CBN, the Managing Director and CEO of NIBSS, Premier Oiwoh, emphasized the significance of these partnerships and collaborations with key industry players. He noted that these alliances represent a major milestone in the ongoing mission to drive innovation and enhance the efficiency of Nigeria’s payment system. The strategic collaborations are expected to revolutionize the ecosystem by offering improved operational efficiency, cost savings, and enhanced financial inclusion. This, in turn, will position Nigeria at the forefront of the global payment space.
In addition, Obi Emetarom, CEO and Co-founder of Zone, reiterated the company’s commitment to transforming the payment landscape in Nigeria. He highlighted that the partnership with NIBSS reflects Zone’s dedication to harnessing the power of blockchain technology to set a new standard for reliable, frictionless, and universally interoperable payments in the industry. By embracing these technological advancements, Zone aims to create a payment environment that is both secure and efficient, ultimately benefiting all stakeholders in the financial ecosystem.
In summary, the strategic partnership between Zone Payment Network Limited and NIBSS represents a forward-thinking approach to addressing the challenges within Nigeria’s POS payment infrastructure. By integrating blockchain technology, the collaboration aims to enhance the efficiency, reliability, and security of payment transactions, thereby improving the overall payment experience for consumers, merchants, and financial institutions alike. As the partnership unfolds, it is expected to play a pivotal role in driving Nigeria’s digital transformation and positioning the country as a leader in the global payment industry.