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Eliminating Chargebacks: How Blockchain is Transforming POS Transactions in Nigeria
Published September 19, 2025
Nigeria’s digital payment landscape is booming. In 2022 alone, POS transaction value skyrocketed to over N41 trillion an 846-fold increase from a decade prior. But this explosive growth has a dark underbelly: a parallel surge in chargeback fraud, costing financial institutions billions of Naira and eroding merchant-customer trust.
Recent headlines paint a stark picture:
For too long, financial institutions and merchants have been caught in a vicious cycle of transaction disputes, manual reconciliations, and fraudulent claims. But what if the very technology heralding a new era of finance blockchain holds the key to solving this pervasive problem?
The Chargeback Quagmire in Nigeria
A chargeback is a reversal of a card payment, often initiated by a customer claiming a transaction was fraudulent or erroneous. While designed as a consumer protection mechanism, it’s increasingly weaponized as “friendly fraud,” where customers falsely dispute legitimate transactions to get refunds while keeping the product or service.
How Blockchain is Building a Fortress Against Fraud
Case in Point: Fairmoney’s Success with ZonePOS
The proof is in the results. A leading Nigerian fintech, Fairmoney, integrated Zone’s blockchain-powered POS gateway to overcome crippling chargeback fraud and system failures.
The outcomes were transformative:
An Associate Director of Strategy at Fairmoney called the integration a “game-changer,” noting a “complete turnaround in our transaction reliability and overwhelmingly positive customer feedback.”
The Future of Payments is Decentralized
While solutions like GPS tracking for terminals are a reactive step, blockchain offers a proactive, architectural solution. It doesn’t just treat the symptoms of chargeback fraud; it rewires the entire system to prevent it from happening in the first place.
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