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Payment network company, Zone, has announced a strategic partnership with the Nigeria Inter-Bank Settlement System (NIBSS). According to a statement by the company, the collaboration will enhance interoperability across the POS payment value chain by leveraging cutting-edge blockchain technology 
 In a conversation with Technext, Chief Executive Officer, Obi Emetarom said that the partnership marks a significant milestone in the adoption of blockchain technology. For him, it will also have far-reaching implications for the regulatory landscape in Nigeria and beyond. 
<a href="https://zonenetwork.com/" target="_blank" rel="noopener">Zone</a> is a regulated blockchain network that enables payments and acceptance of digital currencies. And, <a href="https://nibss-plc.com.ng/" target="_blank" rel="noopener">NIBSS</a> is a national infrastructure mandated to ensure the seamless operation, integration and efficiency of the Nigerian payment system. 
NIBSS also facilitates electronic payments, settlements and identity verification processes, which are essential for the smooth functioning of financial services in Nigeria. 
Read also: <a href="https://technext24.com/2024/05/22/chat-olayiwola-osoba-zone-zone-payments/">A chat with Zone’s Olayiwola Osoba on regulation, opportunities and the future of digital payments in Africa</a> 
<h4 id="how-the-zone-nibss-partnership-will-work" class="wp-block-heading">How the Zone + NIBSS partnership will work&nbsp;</h4> 
The partnership between NIBSS and Zone is expected to enhance the POS payment rail by utilizing blockchain technology to facilitate transaction processing between banks and other financial service providers.&nbsp; 
In 2011, the Central Bank of Nigeria (CBN) <a href="https://nibss-plc.com.ng/payment-terminal-and-application-certification/" target="_blank" rel="noopener">established</a> the Payment Terminal Service Aggregator (PTSA) license category to foster transparency and provide more efficient processes in Nigeria’s Payment System. 
The regulation mandates that all licensed financial service providers connect and route their POS transactions through a PTSA.&nbsp; 
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 <img loading="lazy" decoding="async" width="800" height="450" src="https://technext24.com/wp-content/uploads/2023/06/Contactless-Payments-1-1.jpeg" alt="Payments" class="wp-image-199365">
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According to the statement shared with Technext, the partnership will significantly enhance the reliability and security of transactions, ensuring efficient and secure processing.&nbsp; 
“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“, it said. 
An important aspect of the collaboration is the automated resolution of chargebacks which will allow refunds for declined transactions to be processed within a short period and validate final transaction status in real-time. 
<h4 id="a-pivotal-moment-for-blockchain-adoption-in-payment-zone-ceo" class="wp-block-heading">A pivotal moment for blockchain adoption in payment – Zone CEO</h4> 
While elaborating on how Zone’s blockchain network integrates with existing legacy systems in the financial sector, Obi explained that to achieve integration, Zone nodes are deployed within each financial institution (now including NIBSS) and API endpoints are utilized to connect each node with core systems of each respective financial institution.&nbsp; 
“In doing this, our key focus has been on ensuring regulatory compliance and fulfilling our promise of reliable, frictionless and universally interoperable payments at scale.” He stated. 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="6000" height="4000" src="https://technext24.com/wp-content/uploads/2022/10/Obi-2.jpg" alt="#TNC2022: &quot;DeFi solves the problem of financial inclusion in the African economy&quot; - Obi Emetarom" class="wp-image-159542">
 <figcaption class="wp-element-caption">
 Panel session on “DeFi and the future of finance in Africa ” at Technext Coinference 2022: Speakers (L-R): Buki Ogunsakin, of BBO Solicitors, Obi Emetarom of AppZone and Gideon Orovwiroro of KoraPay
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According to Obi, Zone’s blockchain infrastructure significantly enhances security measures for PoS transactions in several ways particularly tailored to Nigeria’s payment landscape.&nbsp; 
“Firstly, our blockchain provides an immutable and transparent ledger for all transactions. This feature is crucial in Nigeria, where disputes over transactions are not uncommon. With our system, each PoS transaction is recorded in real time and cannot be altered, providing an undeniable audit trail.&nbsp; 
This transparency drastically reduces the potential for fraud and helps quickly resolve any disputes so that when cardholders need to get a refund for failed transactions, this can happen in minutes rather than days, weeks, or months.” 
As a partnership that marks a significant milestone in regulator adoption of blockchain technology, Obi Emetarom and his team believe it will have far-reaching implications for the regulatory landscape in Nigeria, Africa, and potentially, across the Globe.&nbsp; 
In his view, the collaboration with NIBSS, a key affiliate of Nigeria’s Banking regulator, sets a precedent for how blockchain technology can be integrated into existing financial frameworks.&nbsp; 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “It demonstrates that blockchain can enhance rather than disrupt regulatory oversight, potentially easing concerns from other regulators around the world.” 
</blockquote> 
He also expects this development to pave the way for more blockchain-friendly regulations in Nigeria and serve as a model for other countries globally. 
“Looking at future trends, we see several developments in blockchain technology (i.e. DeFi 2.0, CBDCs, cross-border payments) that could further transform financial services in the region.” He concluded. 
Read also: <a href="https://technext24.com/2024/08/01/dogs-token-rewards-crypto-telegram/">$DOGS: This new crypto project will reward you with tokens for using Telegram</a>
The post <a href="https://technext24.com/2024/08/20/zone-nibss-fusion-blockchain-payment/">Zone CEO says Partnership with NIBSS sets precedence for fusion of blockchain and traditional payment frameworks</a> first appeared on <a href="https://technext24.com">Technext</a>.

Zone CEO says Partnership with NIBSS sets precedence for fusion of blockchain and traditional payment frameworks

Technext.ng

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