Carbon, a leading Nigerian Fintech company, has announced the discontinuation of its debit card operation in Nigeria.
This decision marks a shift in the company’s services offering within the highly competitive financial technology landscape.
In a post by Nairametrics, it was disclosed that Carbon’s discontinuation of its debit card operations was announced by the company’s Co-founder Ngozi Dozie, who did not specifically state the reason for the discontinuation.
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He wrote,
“When I take a step back with the benefit of hindsight (and a card operation bill denominated in USD$), I question why practically all neobanks are pushing cards or even getting into it. Was this the right strategy for all of us, or was Carbon just unlucky?”
The above statement suggests that the co-founder is analyzing whether entering the debit card market was a sound strategy for Neobanks in general, or if Carbon’s difficulties were unique due to specific circumstances.
This could imply that the challenges faced by Carbon may not necessarily reflect a flawed strategy but rather specific adverse conditions that it may have encountered.
Carbon, formerly known as Paylater, has been a prominent player in Nigeria’s fintech sector, offering a wide range of financial services including personal loans, bill payments, and investments.
In June 2021, the company announced that it had signed a five-year partnership with Visa to offer both digital and physical issuance of Visa cards to its customers. The partnership came a year after the digital lending company became a digital bank offering a range of financial services including savings and payments.
During the launch of the card, Carbon said in a statement,
“From anywhere, users can request a debit card within minutes on the Carbon app and get them in record time in Lagos and other locations in the country. They will also be able to manage their card activities right from the app. At the tap of a button, customers can freeze and unfreeze their cards, giving them instant control over security.”
With the launch of the card, Carbon hoped that the introduction would build on its millions of customer base, by offering a more complete banking experience for people with different needs, whether they are saving money at industry-high interest gains, sending money at no extra cost, making payments online and offline, or spreading payment for things they need the most but can’t afford at once.
The shutdown of Carbon’s debit card operations in Nigeria is a significant move that highlights the dynamic nature of the fintech industry. While this may pose short-term challenges for its users, Carbon’s commitment to enhancing its other financial services indicates a strategic pivot aimed at long-term growth and sustainability. Customers can expect more innovative solutions as Carbon continues to adapt to the evolving financial landscape.