By Erhumu Bayagbon
In Nigeria, the frustration of failed transactions is a daily reality for millions. Whether it’s withdrawing cash from an ATM or paying with a card, the odds of encountering errors are alarmingly high. Industry sources report that for every ten transactions, one fails. The situation is worse with POS machines, where one in every six transactions doesn’t go through. This inefficiency hinders businesses and limits access to financial services, stifling economic growth.
A Nigeria-based fintech startup, Zone, is using blockchain technology to address the persistent issues of unreliable transactions, connectivity failures, and slow settlements. Co-founded by Obi Emetarom, Zone’s blockchain-powered network allows banks and fintech companies to connect directly, bypassing the traditional intermediaries that often introduce delays and errors. Rightfully, this solution has attracted significant attention from both financial institutions and investors. Recently, Zone secured $8.5 million in a seed round to expand its network domestically and connect more banks and financial services companies.
The round was led by Flourish Ventures, a mission-driven global venture capital firm focused on fintech. Flourish Ventures supports entrepreneurs working to create a more equitable financial system. With over $850 million in assets, its portfolio includes notable companies like Chime and Flutterwave. Flourish has consistently championed innovations that unlock the economic potential of markets like Nigeria, where inefficiencies in the financial system can have far-reaching impacts. Zone’s vision aligns seamlessly with Flourish’s mission to leverage technology for financial inclusion and economic empowerment.
In a recent conversation between Obi Emetarom and Ameya Upadhyay, Venture Partner at Flourish Ventures, Emetarom explained how Zone’s blockchain network will transform Nigeria’s payment landscape. Unlike the volatile, decentralised nature of cryptocurrency, Zone’s blockchain is permissioned and fully regulated by the Central Bank of Nigeria. All participants in the network—whether they are banks or fintech companies—operate within a regulated environment, ensuring the safety and reliability of transactions.
This regulated blockchain offers a new paradigm in payments. By removing the need for a central intermediary, Zone creates a decentralised infrastructure where financial institutions can interact directly. This direct communication reduces the likelihood of system-wide failures, making transactions more reliable. Furthermore, because all parties in the network have access to the same real-time information, disputes are easier to resolve. For instance, in the case of a false chargeback, the blockchain enables instant reconciliation, ensuring that everyone involved has full visibility of the transaction data.
In addition to solving reliability and dispute issues, Zone’s blockchain also serves as both the transaction and settlement processing system. This means that the delays and errors typically associated with settling payments are minimised. The system operates efficiently, processing transactions and settlements simultaneously, further enhancing the user experience for both banks and customers.
Zone’s approach is not just about improving existing systems but also about reimagining how payments could work in the future. As Emetarom explains, the long-term vision is for payments to evolve into a decentralised structure, similar to how email functions today. ‘In the next 10 to 20 years,’ he says, ‘we believe payments will become frictionless and powered by blockchain infrastructure.’ This decentralised future would give power to participants in the payment system rather than relying on a central intermediary.
However, unlike email, payments require regulatory oversight. That’s where Zone’s hybrid model comes into play. The company blends the decentralisation of blockchain with the regulatory safeguards that ensure the safety and compliance of financial transactions. ‘We can build regulatory rules directly into the blockchain,’ says Emetarom, ‘enforcing compliance while still giving participants more control over the system.’
Zone’s clean regulatory track record has been instrumental in building trust with both the Central Bank of Nigeria and the financial institutions that now use its platform. Zone’s initial rollout focused on ATM withdrawals, but the company quickly expanded its services to include POS transactions. This move opens the door to even greater collaboration between banks and fintechs, creating a broader, more inclusive network. With four of Nigeria’s top five banks already onboard, Zone’s growth trajectory is clear. Flourish Ventures’ support has been equally critical. By backing Zone, Flourish is helping to unlock the potential of Nigeria’s economy, ensuring that the country’s financial system can keep pace with the growing demands of its population.
Looking ahead, Zone has the potential to reshape not only Nigeria’s payment systems but also those of other emerging markets. By introducing a decentralised, blockchain-based infrastructure that is fully compliant with local regulations, Zone is paving the way for a more efficient and reliable financial ecosystem. With the ongoing backing of forward-thinking investors like Flourish Ventures, Zone is not only poised to lead the transformation of payment systems across Africa but also to attract a wider range of global investors eager to tap into the continent’s growing tech landscape. This support could serve as a catalyst for further innovations, unlocking new opportunities in Africa’s fintech ecosystem, strengthening financial inclusion, and positioning Nigeria as a hub for cutting-edge financial technology. As more investors recognize the potential in Africa’s tech-driven solutions, the ripple effect could fuel economic growth and elevate the continent’s role in the global tech economy.
As Nigeria adopts innovations like Zone’s blockchain network, the potential for transforming its financial landscape is immense. This technology not only addresses payment failures but could enhance sectors like healthcare, e-commerce, and government services through more efficient, reliable transactions. By expanding beyond ATM and POS transactions, Zone positions Nigeria as a leader in tech-driven financial solutions, attracting investment and showcasing how homegrown innovation can drive economic growth. With continued momentum, Zone’s model could inspire similar advancements across Africa, enhancing financial inclusion and strengthening the continent’s role in the global tech economy.
Erhumu Bayagbon is a tech Marketing & PR Specialist
