Grace Ashiru
Carbon, the Nigerian digital bank, is set to resume issuing cards this month after a six-month pause in its card services. The decision comes in response to customer demand and changes to the company’s card delivery system, according to a statement provided to TechCabal.
“Our international card provider was costly, and some of the processes were too cumbersome for the kind of product we aim to offer our customers,” a Carbon spokesperson explained. “We took a closer look at the challenges associated with debit card usage in Nigeria and worked to optimise the experience, making it more efficient for both customers and businesses,” they added.
According to a source familiar with the matter, the fintech has now refined its card collection and delivery system. Fintech companies, which typically lack physical branches, often rely on partnerships with logistics firms to deliver cards—a practice that increases the overall costs, especially as these costs are priced in dollars.
Like many neobanks, Carbon introduced card issuance as a strategy to retain customers and boost transactions after securing its microfinance license. At the time, the fintech described the move as “a big step” in its evolution from a lending platform to a licensed microfinance bank.
While bank transfers continue to gain popularity, cards remain one of the most reliable ways for customers to access their funds. For many, they provide a straightforward method to withdraw cash, particularly as Carbon operates without an agent network or physical branches.
“Offering cards isn’t about attracting new customers to Carbon; it’s about delivering an essential service,” the spokesperson explained. “It’s focused on providing convenience and ensuring customer retention.”
Amid rising dollar costs for issuing Mastercard and Visa cards and shifts in consumer behaviour, many fintech companies have reevaluated their card operations. This reevaluation has led to a surge in the popularity of Interswitch’s Verve card scheme, with the company issuing 17 million cards for platforms such as Moniepoint and OPay. However, the Verve card faces stiff competition from the Central Bank of Nigeria’s Afrigo card, as both options offer locally priced solutions and more accessible requirements.
For Carbon, which previously issued Visa cards, the decision was made to discontinue its card operations and rethink its strategy. The fintech has chosen not to disclose its new card issuer.
