- Zone unveils a blockchain-powered payment gateway to address failed point-of-sale transactions in Nigeria, aiming to eliminate transaction failures, reduce chargebacks, and expedite settlements for merchants.
Africa’s payment infrastructure company, Zone, has unveiled a blockchain-powered payment gateway to address the issue of failed point-of-sale (POS) transactions in Nigeria. This new solution aims to eliminate transaction failures, reduce chargebacks, and expedite settlements for merchants, responding to the increasing demand for efficient and secure payment systems in the country.
Failed POS transactions have long plagued Nigeria, causing revenue losses for merchants and frustration for consumers. “The issues of failed transactions while using POS are usually a result of using centralized systems. Zone has now developed a decentralized solution, powered by blockchain, to tackle these problems,” explained Osoba. He noted that high transaction volumes can strain centralized networks, leading to transaction failures.
Zone, a decentralized network of banks and fintechs supported by blockchain technology, focuses on facilitating domestic and cross-border payments. The new POS payment gateway follows the successful deployment of Zone’s ATM transaction processing service, reinforcing the company’s commitment to providing reliable, frictionless, and interoperable payment solutions across various channels.
At the heart of Zone’s POS Payment Gateway is a regulated layer-1 blockchain network, offering a comprehensive payment processing solution for banks and fintechs that operate POS terminals. The CBN-licensed payment switch operator stated that the new solution would enable direct transaction routing to issuers without breaching regulatory guidelines on inter-bank payments.
The product promises reliable transactions through direct routing to issuers, same-day settlement for beneficiaries and their financial institutions, and a robust mechanism to eliminate chargebacks and chargeback fraud. Obi Emetarom, CEO and co-founder of Zone, remarked, “Today marks a pivotal moment for Zone, the financial institutions we support, and their customers. Our PoS Payment Gateway product underscores our commitment to financial inclusion and the digital future of payments in Africa. We are excited to advance our vision of enabling instant payments for individuals and businesses globally, using any payment method and currency.”
As of March 2024, the Nigeria Inter-Bank Settlement System reported 2.68 million POS terminals in Nigeria, reflecting significant growth in the digital payment ecosystem. This increase is attributed to the rising adoption of POS terminals by merchants and individuals, with 864,753 new terminals deployed in the past year. The shift towards cashless transactions is driven by rapid merchant adoption, the need to compensate for ATM shortages, and the convenience of cash withdrawals through POS agents.
Zone explained that its system would connect acquirers directly to issuers through decentralized payment switching networks. “Zone’s advanced PoS payment gateway eliminates chargebacks and chargeback fraud by auto-refunding customers for unsuccessful transactions and auto-declining fraudulent chargebacks in real-time, fostering trust and satisfaction among all parties involved. Payments from PoS terminals using Zone are settled on the same day for each transaction, ensuring faster fund availability for agents and merchants, and making it easy to verify the receipt of value for every transaction,” the company elaborated.
