NIBSS joins Zone’s blockchain payment network to include PoS standardization functions on the blockchain. This is expected to improve interoperability across the PoS payment value chain.
It will also mean NIBSS, a central switch in Nigeria, will become a part of the Zone payment blockchain network. This comes after Zone announced the launch of a blockchain-powered PoS payment gateway.
This PoS payment gateway makes Zone a PoS payment switch. However, instead of routing card transactions from merchant banks to cardholder banks, institutions on the Zone blockchain network can route transactions directly between each other.
Also, the payment network’s partnership with NIBSS means that it can perform Payment Terminal Service Aggregator (PTSA) functions, which allows it to verify the technical and operational standardisation of PoS machines.
The PTSA licence category was established by the Central Bank of Nigeria (CBN) to address challenges related to transparency and provide efficient payment processes. Consequently, all licensed financial service providers must connect and route their PoS transactions through a PTSA.
Zone’s partnership with NIBSS means institutions on the blockchain automatically become a PTSA.
Another key feature of the blockchain payment network is the automated resolution of chargebacks. Zone explained that this feature allows refunds for declined transactions to be processed within minutes. Additionally, it will validate the final transaction status in real time. The startup believes that its product will improve the overall cardholder experience.
Zone launched a blockchain-powered PoS payment gateway in June 2024
Recall that Zone launched a blockchain-powered PoS payment gateway in June 2024 to enable banks and fintechs to facilitate payments, allowing direct routing of transactions to issuers. The company prides itself on its product as Africa’s first decentralized PoS payment gateway.
While other entities, including Interswitch, Unified Payments, and eTranzact, also offer PoS payment gateways, they are said to use a centralised architecture. However, Zone boasts a decentralised architecture powered by blockchain technology.
Read Also: Android New Theft Detection Lock Rolled Out
On the partnership, the Managing Director and CEO of NIBSS, Premier Oiwoh, stated that it will revolutionise the ecosystem, offering improved operational efficiency, cost savings, and enhanced financial inclusion.
The CEO and co-founder of Zone, Obi Emetarom, said that by harnessing the power of blockchain technology, the company is setting a new standard for reliable, frictionless, and universally interoperable payments in the industry.
Leave a comment below and follow us on social media for more tips and updates:
- Facebook: Today Africa
- Instagram: Today Africa
- Twitter: Today Africa
- LinkedIn: Today Africa
- YouTube: Today Africa Studios
