Zone Payment Network Limited (formerly known as Appzone), one of Nigeria’s growing payment infrastructure providers, has entered into strategic partnership with Nigeria Inter-Bank Settlement System (NIBSS) Plc, the National Central Switch and Nigeria’s first Payment Terminal Service Aggregator (PTSA).
This collaboration, Techeconomy can report, aims to enhance interoperability across the POS payment value chain by leveraging cutting-edge blockchain technology.
To address the challenges of transparency and provide more efficient payment processes in Nigeria Payment System, the Central Bank of Nigeria (CBN) has established the Payment Terminal Service Aggregator (PTSA) license category.
This regulation mandates that all licensed financial service providers must connect and route their POS transactions through a PTSA. The goal is to improve the payment experience for individuals and merchants, streamline reconciliation processes and ultimately reduce financial losses and cost of operations for Banks and other financial institutions.
The partnership between NIBSS and Zone is set to enhance the POS payment rail by utilizing blockchain technology to facilitate transaction processing between banks and other financial service providers.
It will significantly enhance the reliability and security of transactions, ensuring efficient and secure processing.
With the introduction of decentralized card routing, Banks and fintechs will be able to perform card routing between POS terminals and cardholder banks while remaining fully compliant with both payment switching and PTSA regulations as defined by the Central Bank.
A critical feature of this partnership is the automated resolution of chargebacks, allowing refunds for declined transactions to be processed within minutes, eliminating the need for manual intervention and reducing the inconvenience of frequent bank visits for customers.
Additionally, it will validate final transaction status in real-time, thereby enhancing liquidity and improving overall business operations.
This timely access to funds is a game-changer for merchants.
As Nigeria transitions further to a more digital society, this will significantly improve the overall card-holder experience through enhanced service reliability, faster response time and reduced transaction processing cost, all of which are crucial in supporting the expected scale of transactions.
Agent networks will also benefit from the opportunity to generate more revenue thereby incentivizing the expansion of financial services.
Speaking on the outcome of the directives by Mr. Premier Oiwoh, the CBN, the managing director and CEO of NIBSS, stated,
“These partnerships and collaborations with key industry players represent a significant milestone in our mission to drive innovation and enhance the efficiency of the payment system. The strategic alliances will revolutionize the ecosystem, offering improved operational efficiency, cost savings and enhanced financial inclusion, ultimately positioning Nigeria at the forefront of the global payment space”.
On his part, Obi Emetarom, CEO and Co-founder of Zone, added,
“This partnership with NIBSS reflects our unwavering commitment to transform the payment landscape in Nigeria. By harnessing the power of blockchain technology, we are setting a new standard for reliable, frictionless, and universally interoperable payments in the industry.”
