Nigerian fintech Accelerex and ITEX join Zone’s blockchain network

Nigerian financial technology companies Accelerex and ITEX have joined decentralized payment’s processing firm Zone’s regulated blockchain network.  

This will allow both payment terminal service providers (PTSPs) to process point of sale (POS) payments for their merchants and users onchain. 

The details 

• In a press release announcing the development, both firms said integrating Zone’s blockchain allows them to eliminate transaction failures and enable instant settlement. 
• At the core of their business, Accelerex and ITEX issue, deploy and maintain POS terminals — hardware devices used by businesses to accept and process card payments. 
• In Nigeria, POS terminals have grown popular as an avenue for quick cash withdrawals through debit cards or mobile money transfers. 
• Through Zone’s decentralized peer-to-peer network, these firms can bypass third parties and ensure that transactions are routed directly to the financial institutions issuing the cards. 
• In addition, it can also settle transactions instantly, resolve disputes quicker and prevent chargeback fraud through the traceability that a blockchain provides. 

Key quotes 

• Accelerex’s managing director Chuks Anakudo said: 

“Our integration with Zone’s blockchain-powered payment network strengthens our ability to process payments seamlessly, eliminate chargebacks, ensure real-time settlement, and maintain full regulatory compliance; ultimately improving transaction efficiency across Nigeria.” 

• Commenting on the integration, Obi Emetarom, Zone’s CEO, said: 

“The adoption of blockchain payments by major players like Accelerex and ITEX signals an industry-wide shift. As financial institutions prioritize payment reliability, operational efficiency, and compliance, we are proud to provide the regulated blockchain infrastructure that makes this transformation possible.” 

Some background 

• Zone Network, built on the Hyperledger Fabric, utilizes decentralized ledger technology (DLT) to act as a payments switch among financial institutions in Nigeria.  
• Unlike traditional payments switches which are centralized, Zone allows the participants in a transaction to relate and settle payments in a peer-to-peer manner. 
• While the firm initially catered exclusively to ATM transactions among banks, it has evolved into blockchain-based POS services for which it secured a gateway last June. 
• Last September, Nigerian fintechs Baxi, Fairmoney and Konga also joined Zone’s network to bring number of traditional companies utilizing the system to 24. 

Zoom out 

• Accelerex and ITEX’s integration of Zone’s blockchain network is the latest in a series of traditional finance companies going decentralized to improve their services. 
• In a report earlier this year, big four firm KPMG urged Nigerian financial institutions to embrace blockchain technology and collaborate with cryptocurrency firms. 
• According to the professional services company, an integration between tradFi and deFi institutions could see tradFi firms gain needed exposure to technology that enhances their services. 
• Last month, the Nigerian fintech Flutterwave joined other traditional and crypto companies on the Circle Payment Network designed to settle crossborder transactions onchain using stablecoins. 
• Mariblock also reported that South African bank Nedbank itemized plans to rollout smart contract technology to enhance its offerings within the next year.