The Nigerian payments infrastructure company, Zone, has successfully processed over ₦1 trillion in transactions on its blockchain network from November 2022 to December 2024. This achievement, as shared by the company’s CEO, Obi Emetarom, involved handling 100 million transactions, with an average value of ₦10,000 per transaction. Notably, a significant portion of these transactions took place on automated teller machines (ATMs), marking a notable advancement in blockchain-powered payments at this scale in Nigeria.
Despite the decreasing trend in ATM usage, Zone’s blockchain network has seen substantial activity. While ATM transaction values have declined over the past few years, transitioning to Point-of-Sale (POS) terminals and digital payments, twelve banks are currently leveraging Zone’s blockchain network. However, the utilization of blockchain technology for ATM transactions remains relatively limited among these banks.
Emetarom, the CEO of Zone, mentioned that broader ATM adoption could have expedited the achievement of ₦1 trillion in transactions. The decision to start with ATM transactions was a deliberate choice to introduce a new element gradually into the system without overwhelming it. This approach aimed to establish a reliable system step by step.
Zone’s network not only enables faster settlement rates for ATM transactions but also offers a solution for processing POS payments on the blockchain. After obtaining a switching license in 2022, Zone initiated a test phase for its blockchain network on ATMs, leading to a successful pilot that paved the way for a commercial launch in January 2023. The company has since collaborated closely with banks to enhance their payment infrastructure.
With a Layer-1 blockchain capable of handling 10,000 transactions per second, Zone expanded its blockchain network to include terminal payments following the success with ATMs and the increasing volume of POS transactions. In mid-2024, the company extended its blockchain network to POS terminals and later partnered with the Nigeria Inter-Bank Settlement System Plc (NIBSS) in August to record POS transactions on its blockchain ledger.
Although the partnership with NIBSS was anticipated to commence in October 2024, delays arose due to NIBSS’s institutional procedures and uncertainties regarding the Central Bank of Nigeria’s stance. Despite receiving approval from the CBN in December, the integration process faced challenges.
Zone continues to test its blockchain network to ensure data integrity and prepare for the full integration of NIBSS into its ecosystem. The company remains cautious in its rollout to POS payments to maintain regulatory trust. Looking ahead, Zone aims to extend its blockchain payment solutions to businesses facilitating account-to-account fund transfers, making its technology more accessible to the general Nigerian populace.
While Zone declined to disclose revenue figures, citing confidentiality agreements with investors, it remains optimistic about expanding its technology beyond Nigeria’s borders in the future. The company has not engaged in discussions with foreign financial institutions yet.