Nigerian payments infrastructure company Zone has reported facilitating transactions exceeding ₦1 trillion (approximately $660 million) on its blockchain network from November 2022 to December 2024, as stated by CEO Obi Emetarom. Zone stands out as the only blockchain financial institution in Nigeria licensed to offer switching and processing services. It operates a layer 1 blockchain network that allows direct transaction flows between financial service providers without the need for intermediaries.
The platform automates critical processes such as settlement, reconciliation, and dispute management, and currently serves over 15 of Africa’s leading banks and fintech companies for payment processing. During the specified period, Zone recorded an impressive 100 million transactions, with an average transaction value of ₦10,000 (about $6.60). Although the overall adoption of blockchain technology in banking remains limited, a significant portion of these transactions was conducted through automated teller machines (ATMs), marking a pioneering large-scale implementation of blockchain-powered payments in Nigeria.
This milestone is particularly noteworthy given the recent decline in ATM usage. Over the past three years, the total value of ATM transactions has decreased from ₦32.65 trillion ($21.5 billion) in 2022 to ₦28.2 trillion ($18.6 billion) in 2023, as more customers shift towards Point-of-Sale (POS) terminals and digital payment methods.
Currently, twelve banks are utilizing Zone’s blockchain network, although only a select few are leveraging the technology for processing ATM transactions. Emetarom noted, “If there was wider adoption of ATMs, reaching ₦1 trillion in transactions would have been faster.” He explained that the company initially used ATMs as a pilot to introduce their innovative system, opting for a manageable transaction type to build a credible and efficient platform.
Zone’s network, known as ZonePoS, allows for the processing of POS payments using blockchain technology, enabling banks to achieve faster settlement rates for ATM transactions. Zone first implemented its blockchain technology in ATMs before developing a module within its layer-1 blockchain system to accommodate POS payments. The ZonePOS point-of-sale payment gateway solution was launched in June 2024, designed as a comprehensive payment processing solution for banks and fintechs deploying POS terminals.
According to Emetarom, Zone’s Layer-1 blockchain is capable of handling 10,000 transactions per second (TPS) “right out of the box.” Following the success with ATMs and the increasing volume of POS transactions, Zone expanded its blockchain network to support terminal payments. In August 2024, Zone announced a partnership with the Nigerian Inter-Bank Settlement Scheme (NIBSS) to integrate blockchain technology into POS terminal payments. This partnership, which is currently being rolled out, will enable banks and fintechs to perform card routing between POS terminals and cardholder banks while ensuring full compliance with payment switching and PTSA regulations set by the Central Bank of Nigeria.
