Africa's Pioneering Blockchain Company, Zone, Set to Introduce Remittance Product in 2025
Zone, Africa's premier licensed blockchain payment infrastructure firm, is gearing up to unveil a remittance product in 2025, according to CEO Obi Emetarom, as disclosed to TechCabal this week. Emetarom noted that active efforts are underway to develop the forthcoming remittance offering.
In addressing the primary challenges faced by remittance providers and International Money Transfer Operators (IMTOs), Zone aims to tackle distribution, liquidity, and licensing issues. Remittance startups often grapple with establishing robust distribution networks for fund transfers without direct ties to local banks. Additionally, managing liquidity across diverse local currencies poses financial challenges. The complex licensing requirements across various jurisdictions constitute a third obstacle.
Emetarom emphasized, "We want to deliver these services. The integration is possible because we are a switch and already connected to banks. Secondly, liquidity is possible because our settlement is instant." Regarding licensing, he asserted, "We already have a switching license, and our roadmap is to ensure that we have all the licenses needed to operate in different markets."
The Central Bank of Nigeria lifted a two-year ban on crypto-related bank accounts in December 2023, subsequently issuing stringent rules for banks engaging in crypto transactions. Emetarom views this regulatory shift as a "fantastic development" that will create opportunities in cross-border payments.
Beyond its current role as a payment processor and switch, Zone aspires to reshape the financial landscape by envisioning a future characterized by regulated decentralized finance (DeFi). This entails leveraging the strengths of blockchain technology while maintaining the legitimacy of traditional finance. Emetarom revealed ongoing efforts to draft a white paper outlining this vision and emphasized building Zone as the foundation for this future.
Established in 2008 by Emeka Emetarom, Obi Emetarom, and Wale Onawunmi, Zone underwent a rebranding from a fintech software provider to a blockchain payment infrastructure company in 2022. This transition resulted in two separate entities, with Appzone's cloud-based Software-as-a-Service (SaaS) platform becoming Qore, and Zone evolving into the blockchain-based payment gateway.
As a payments switch licensed by the Central Bank of Nigeria, Zone operates a blockchain network facilitating direct transaction flow between financial service providers without intermediaries. Thirteen Nigerian banks utilize Zone's blockchain network for processing ATM transactions.
Zone generates revenue through transaction fees, and although specific figures were not disclosed, Emetarom noted an increase in the daily transaction volume from the previously claimed $1 million in 2023.
In addition to its existing blockchain payments technology use cases, such as ATM transactions, Zone is poised to launch Zone 2.0—a new blockchain infrastructure based on the Ethereum standard, allowing instant settlements for financial institutions. The company intends to expand its reach into Global South markets, focusing particularly on Latin America, Southeast Asia, and the Middle East.