Zone Processes Over ₦1 Trillion in Transactions Using Blockchain Technology
Zone, a Nigerian payment infrastructure company, has made history by processing over ₦1 trillion in transactions on its blockchain network. This achievement happened between November 2022 and December 2024, marking a major milestone as Nigerian banks begin to adopt blockchain technology. According to Zone’s CEO, Obi Emetarom, the company processed 100 million transactions, with each transaction averaging ₦10,000.
This success is a big deal for Nigeria’s financial sector because it shows how blockchain technology can improve payment systems. While blockchain is still new in Nigerian banking, Zone has used it to power ATM transactions on a large scale, something that has never been done before in the country.
Why This is Important for Nigeria
Blockchain technology is known for being fast, secure, and transparent. By using blockchain, Zone has been able to process ATM transactions more efficiently. This is especially impressive because ATM usage in Nigeria has been declining in recent years.
For example, in 2022, Nigerians withdrew ₦32.65 trillion from ATMs. But by 2023, this number dropped to ₦28.2 trillion as more people started using Point-of-Sale (POS) terminals and digital payment methods. Despite this decline, Zone chose to focus on ATMs as a way to introduce blockchain technology to the Nigerian market.
Why Zone Focused on ATMs
Zone’s CEO, Obi Emetarom, explained that the company chose ATMs as a starting point because they wanted to test blockchain technology on a smaller scale before expanding.
“We used the ATM as a pilot to introduce something new,” Emetarom said. “If there was wider adoption of ATMs, reaching ₦1 trillion in transactions would have been faster.”
By starting with ATMs, Zone was able to build a reliable system and prove that blockchain could work for financial transactions in Nigeria.
How Zone’s Blockchain Network Works
Zone’s blockchain network is designed to make payments faster and more secure. Here’s how it works:
- Faster Settlements: Blockchain allows transactions to be processed quickly, reducing the time it takes for payments to go through.
- Transparency: Every transaction is recorded on the blockchain, making it easy to track and verify payments.
- Security: Blockchain technology is highly secure, reducing the risk of fraud and errors.
In addition to ATMs, Zone also supports POS payments through a feature called ZonePoS. This allows businesses to accept payments using POS terminals connected to Zone’s blockchain network.
Challenges Zone Faced
One of the biggest challenges Zone faced was convincing banks and regulators that blockchain technology could comply with financial regulations. Many banks were worried about the risks of using blockchain and decentralized finance (DeFi), such as fines or losing their licenses.
To address these concerns, Zone built a Layer-1 blockchain that can handle 10,000 transactions per second. This system has proven to be reliable during the pilot phase, helping to build trust with banks and regulators.
Partnership with NIBSS
In June 2024, Zone expanded its blockchain network to include POS terminals. By August 2024, the company partnered with the Nigeria Inter-Bank Settlement System Plc (NIBSS), the organization that handles payment processing in Nigeria.
This partnership aimed to record POS transactions on Zone’s blockchain ledger for better transparency and efficiency. However, the rollout faced some delays because of NIBSS’s internal processes and the need for approval from the Central Bank of Nigeria (CBN).
By December 2024, the CBN gave its approval, allowing Zone to move forward with its plans.
What’s Next for Zone?
Zone is currently working with NIBSS to test its network and ensure data integrity before fully launching POS payment records on the blockchain. For now, the company is collecting and storing POS terminal identities on its network while preparing for full-scale operations.
In the future, Zone plans to expand its services to include account-to-account fund transfers, making it easier for Nigerians to send and receive money. The company is also exploring opportunities to take its technology beyond Nigeria’s borders.
What This Means for Nigeria’s Financial Sector
Zone’s success shows how blockchain technology can transform Nigeria’s financial sector. By processing over ₦1 trillion in transactions, Zone has proven that blockchain can make payments faster, more secure, and more transparent.
This milestone is a big step forward for Nigeria as it moves toward a more digital and cashless economy. It also highlights the potential for Nigerian companies to lead the way in adopting innovative technologies like blockchain.
Round Up
Zone’s achievement of processing over ₦1 trillion in transactions using blockchain technology is a major milestone for Nigeria’s financial sector. By focusing on ATMs and POS terminals, Zone has shown how blockchain can improve payment systems and make transactions faster and more secure.
As Zone continues to expand its services, it is paving the way for more Nigerian banks and businesses to adopt blockchain technology. This is not just a win for Zone but for the entire Nigerian economy, as it moves closer to becoming a leader in digital payments and financial innovation.
