Africa’s digital payments ecosystem is entering a new phase of infrastructure development, with blockchain-based settlement systems increasingly positioned as alternatives to legacy interbank rails. Zone, the Nigerian-founded blockchain payments infrastructure company formerly known as Appzone, is expanding its footprint across African markets, including East Africa, as demand for faster and more reliable settlement systems grows.
The company’s expansion comes at a time when Africa’s digital payments market is projected to exceed $40 billion in annual revenues by 2025, according to McKinsey, driven by mobile penetration and financial inclusion initiatives.
Structural Inefficiencies in Payment Infrastructure
Despite rapid growth in digital transactions, much of Africa’s payment infrastructure remains fragmented. According to the World Bank, cross-border payment costs in Sub-Saharan Africa average above 7%, among the highest globally.
Legacy systems, often reliant on batch processing and intermediated settlement, introduce delays and liquidity inefficiencies for financial institutions.
Zone’s blockchain-based infrastructure seeks to address this by enabling real-time settlement between banks, reducing reliance on centralized clearing systems.
Central Bank Alignment and Regulatory Dynamics
Unlike retail crypto platforms, Zone operates at the infrastructure layer, positioning itself within regulatory frameworks rather than outside them. The company has worked closely with central banks, including the Central Bank of Nigeria, to deploy blockchain infrastructure compatible with existing financial regulations.
This approach reflects a broader regulatory trend across Africa, where authorities are more receptive to enterprise blockchain applications than to speculative digital assets.
Liquidity and Settlement Efficiency
One of the core challenges in African banking systems is liquidity fragmentation. Banks often maintain multiple nostro accounts across jurisdictions, tying up capital and increasing operational costs.
Blockchain-based settlement systems allow for near-instant reconciliation, improving capital efficiency and reducing settlement risk.
According to the African Development Bank, improving financial infrastructure efficiency could unlock billions in intra-African trade by reducing transaction friction.
Power Dynamics in Financial Infrastructure
The evolution of payments infrastructure introduces a critical power dynamic: control over settlement rails. Institutions that provide underlying transaction infrastructure gain disproportionate influence over transaction flows, data visibility, and liquidity access.
Zone’s positioning suggests a long-term strategy focused not just on transaction volume, but on becoming a foundational layer within Africa’s financial architecture.
Forward Trajectory
As AfCFTA implementation accelerates intra-African trade, demand for efficient cross-border payment systems is expected to increase significantly. Infrastructure providers capable of integrating with banks while meeting regulatory standards are likely to play a central role in this transition.
The shift toward blockchain-based financial infrastructure is therefore less about crypto adoption and more about resolving long-standing inefficiencies within the banking system itself.
