Zone Payment Network Limited partners with NIBSS Plc to transform Nigeria’s POS payments, leveraging blockchain technology to overcome payment system challenges.
This collaboration complies with CBN’s PTSA requirements, aiming to create a seamless, transparent, and efficient payment process that reduces costs and financial losses for banks and financial institutions.
NIBSS CEO Premier Oiwoh emphasised that these collaborations mark a breakthrough in their quest to revolutionise the payment system through innovation and efficiency.
He further noted that this strategic partnership seeks “optimised operational efficiency, reduced costs, and expanded financial inclusion,” propelling Nigeria to a leading position in the global payment system.
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How to leverage blockchain for secure transaction processing
By leveraging blockchain technology, the decentralised card routing system allows banks and fintech companies to efficiently process transactions between POS terminals and cardholder banks while maintaining compliance with CBN regulations.
This secure and reliable approach strengthens the POS transaction ecosystem, promoting trust and confidence in digital payments.
Blockchain-powered card routing systems enable decentralised payment processing, allowing POS terminals to transact directly with cardholder banks. This distributed architecture bypasses traditional centralised hubs, leveraging the security and scalability of blockchain technology to facilitate fast, secure, and reliable transaction processing.
This strategy enhances security, speeds up transaction processing, reduces costs, and ensures regulatory compliance by recording and verifying each transaction on a secure ledger.
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NIBSS and CBN Regulatory frameworks for contactless payments
The Central Bank of Nigeria (CBN) has established regulatory frameworks for contactless payment solutions, leveraging its statutory authority under the Central Bank of Nigeria Act, 2007, and the Banks and Other Financial Institutions Act, 2020.
These guidelines establish a foundational framework for implementing and operating contactless payment systems in Nigeria, ensuring a standardised baseline for security, interoperability, and user experience.
Payment Terminal Service Providers (PTSPs), licensed by the CBN, are responsible for deploying contactless payment-enabled terminals, such as point-of-sale (POS) terminals. These providers must ensure the terminals’ quality and functionality through regular maintenance and offer 24/7 support. They are expected to address any repair or replacement issues within 48 hours of being notified.
NIBSS, Nigeria’s sole Payment Terminal Service Aggregator (PTSA), manages the interconnectivity of all payment terminals, ensuring brand-agnostic devices accept cards from any bank or licensed scheme.
NIBSS standardises technical specs and implements risk management for contactless payments.