This partnership follows a recent directive from the Central Bank of Nigeria (CBN), which mandates that all Point of Sale (POS) transactions must be routed through the Payment Terminal Service Aggregator (PTSA).

This directive, issued to improve the monitoring of electronic transactions nationwide, marks a key step in strengthening the country’s payment ecosystem.

Under this agreement, NIBSS will serve as the primary PTSA for Interswitch, creating a foundation for improved transaction efficiency and regulatory compliance.

The partnership also opens avenues for collaboration in other areas, with both organisations focused on driving innovation and advancing Nigeria’s broader payment infrastructure.

Akeem Lawal, managing director, Payment Processing and Switching (Interswitch Purepay), expressed excitement about the partnership, emphasising its significance in advancing the payments industry in Nigeria: 

“We are delighted to strengthen our collaboration with NIBSS as we align with the CBN’s directive. This partnership reinforces our unwavering commitment to maintaining the highest standards in payment processing in Nigeria, while driving significant value for our stakeholders and the broader industry.

“By bringing our robust infrastructure to bear in this partnership with NIBSS, we will ensure further improvements in connection capacity, system uptime, and transaction success rates. This collaboration ensures full compliance with the CBN’s requirements and delivers a seamless, reliable experience for merchants and consumers across Nigeria,” Lawal said.

In addition to meeting the CBN’s compliance directive, Interswitch and NIBSS are working on introducing solutions for terminal re-certification and optimising transaction processing uptime.

These efforts will provide merchants and consumers with enhanced reliability and efficiency in transaction processing.

Speaking on the outcome of the directives by the CBN, Mr. Premier Oiwoh, the managing director and CEO of NIBSS, stated:

“This collaboration with key industry players like Interswitch represents a significant milestone in our mission to drive innovation and enhance payment system efficiency. The strategic alliance strengthens the monitoring of electronic transactions, improving tracking and oversight across Nigeria. Ultimately, positioning Nigeria at the forefront of the global payment industry.”

Through this collaboration, customers and partners can expect enhanced reliability and efficiency in transaction processing. Interswitch and NIBSS are committed to ensuring a smooth transition, with ongoing pilots and rigorous testing to prevent service disruptions.

The two companies will continue to roll out new solutions, features, and enhancements as part of this alliance, contributing to the sustained growth and development of Nigeria’s financial ecosystem.

This partnership highlights the dedication of both Interswitch and NIBSS to delivering innovative and efficient solutions that strengthen the compliance and resilience of Nigeria’s payment infrastructure.

Interswitch remains committed to pushing the boundaries of innovation to deliver payment solutions that enable commerce across Africa.

Baxi by Onafriq, a leading payment service provider; FairMoney Microfinance Bank and KongaPay, a licensed mobile money operator known for its seamless and secure payment solutions are now part of Zone’s expanding ecosystem.

Zone, a regulated blockchain network that enables payments and acceptance of regulated digital currencies, is Africa’s fastest-growing payment infrastructure company.

This development follows the company’s recent launch of its decentralized PoS Payment Gateway product, ZonePOS, and the strategic partnership with Nigeria Inter-Bank Settlement System (NIBSS) Plc to decentralise Payment Terminal Service Aggregator (PTSA) functions using Blockchain Technology.

This development builds upon the recent onboarding of some of Africa’s largest and most prominent financial institutions—First Bank, UBA, and Zenith Bank—to Zone’s regulated blockchain network.

The addition of Baxi, FairMoney and KongaPay demonstrates the applicability and appeal of Zone’s technology across various segments of the financial services industry.

Zone secured a payment switching and processing license from the Central Bank of Nigeria in 2022, making its payment infrastructure Africa’s first regulated blockchain network for payments.

By integrating with Zone’s regulated blockchain network, Baxi, FairMoney, and KongaPay will significantly enhance their payment processing capabilities, benefiting from:

1. Direct Transaction Routing: Eliminating intermediaries and reducing failure points, resulting in faster, more reliable, and more scalable transaction processing at lower costs.
2. End-to-End Transparency: Providing automatic reconciliation, which eliminates chargebacks and prevents chargeback fraud.
3. Same-Day Settlement: Delivering quicker value for successful transactions to financial institutions and their customers.

Obi Emetarom, CEO and co-founder of Zone, commented on the announcement:

“We are excited to welcome Baxi, FairMoney, and KongaPay to our network. Their integration is an important step in our journey to advance the payment landscape in Africa and beyond. It underscores the growing trust in our technology and its ability to deliver on our promise of reliable, frictionless, and universally interoperable payment experiences across various financial service verticals. As we continue to expand and enhance our payment network, we remain committed to connecting every monetary store of value and enabling a truly inclusive financial ecosystem.”

This expansion of Zone’s network, coupled with its recent partnership with NIBSS to enhance Payment Terminal Service Aggregator (PTSA) operations using blockchain technology, demonstrates the growing acceptance and transformative potential of regulated blockchain in mainstream finance.

It sets a new standard for payment processing in Nigeria and potentially across Africa and other emerging markets, promising improved customer experiences and operational efficiency, along with reduced transaction costs, and enhanced financial inclusion.