Nigerian digital bank Carbon is relaunching its card services this month, marking a comeback after a six-month pause.
The company had previously ceased its debit card offerings in June 2024, two years after introducing them as part of its transition from a lending platform to a full-fledged digital bank.
Ngozi Pascal Dozie, Carbon’s co-founder and CEO, announced the development in a Substack post. In his post, Dozie reflected on the initial decision to launch cards, acknowledging it may have been influenced by industry trends rather than robust strategic analysis.
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“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 the right strategy for all of us, or was Carbon just unlucky?”, he wrote,
Carbon’s initial decision to halt its card operations stemmed from several challenges. Rising costs associated with its international card provider, coupled with logistical inefficiencies in card distribution, made the service unsustainable. The company’s CEO admitted that the initial strategy lacked a deep evaluation of market needs.
Carbon hoped that the introduction of the card would build on its millions of customer base, by offering a more complete banking experience for people with different needs. In retrospect, the CEO noted that Nigerian consumers already have access to multiple debit cards, reducing the demand for additional offerings.
A Refined Approach to Card Services
After reassessing its strategy, Carbon is reintroducing card services with improvements aimed at addressing past pain points. While the company hasn’t disclosed its new card provider, it is expected to leverage cost-effective local alternatives like Interswitch’s Verve or the Central Bank of Nigeria’s Afrigo card.
Both options offer affordable, locally tailored solutions compared to global providers like Visa and Mastercard, which are burdened by rising dollar costs. For Carbon, the focus is less on acquiring new customers and more on enhancing convenience for existing users.
The decision to prioritize local card schemes aligns with a broader industry trend. Providers like Verve have gained significant traction, issuing millions of cards for fintechs like Moniepoint and OPay. Verve now faces competition from the Afrigo card, which also offers, cost-effective and accessible solutions tailored to local markets.
Despite the growing popularity of bank transfers in Nigeria, cards remain a critical tool for seamless access to funds. Carbon’s return to card services underscores its commitment to delivering essential banking solutions and retaining customer loyalty in a highly competitive fintech market.
With a refined process in place, Carbon’s reentry into the card space demonstrates its resolve to adapt and meet the evolving needs of its customers, ensuring a smoother banking experience.
The Neobank believes access to credit and quality financial services is a human right. It has a mission to empower all people with the financial access they need to pursue a life of dignity and prosperity.