Africa’s premier licensed blockchain payment infrastructure company, Zone, is set to introduce a remittance product in 2025, according to CEO Obi Emetarom.
The company is actively working on the development of this product, aiming to tackle three major challenges faced by remittance providers and International Money Transfer Operators (IMTOs): distribution, liquidity, and licensing.
Addressing the need for robust distribution networks, Zone plans to leverage its existing connections with banks as a switch to deliver funds without direct links to local banks. Liquidity management in diverse local currencies, which can be costly, will be facilitated by the instant settlement capability of Zone’s infrastructure.
The company also aims to navigate complex licensing requirements across various jurisdictions by acquiring the necessary licenses to operate in different markets.
Emetarom sees the recent reversal of the two-year ban on crypto-related bank accounts in Nigeria as a positive development. He believes it will create opportunities in cross-border payments, and Zone is positioning itself to capitalize on this by exploring the integration of blockchain technology and traditional finance in the form of regulated decentralized finance (DeFi). Zone intends to become the foundation for this future financial landscape, and a white paper is in the works to outline this vision.
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About the Zone
Originally founded in 2008 as Appzone, the company underwent a rebranding in 2022 to become Zone, transitioning from a fintech software provider to a blockchain payment infrastructure company. With a license from the Central Bank of Nigeria as a payments switch, Zone operates a blockchain network facilitating direct transactions between financial service providers without intermediaries.
Currently utilized by thirteen Nigerian banks for processing ATM transactions, Zone charges a fee for each transaction processed through its channels.
While Zone reported processing $1 million daily in 2023, Emetarom mentioned that the figure has since increased, though specific numbers were not disclosed.
The company plans to expand its blockchain payments technology into additional use cases, including online payments and direct debit. Zone 2.0, a new blockchain infrastructure based on the Ethereum standard, is also on the horizon, offering instant settlements for financial institutions. The startup has its sights set on entering Global South markets, with a focus on Latin America, Southeast Asia, and the Middle East.
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