Resumed Operations for Carbon in Card Services, Offering an Improved Experience to Nigerian Clients After a Six-Month Hiatus

Nigerian digital bank, Carbon, is set to resume card services this month after a six-month pause. The decision comes in response to customer demand and changes to the company's card delivery system.

In a move aimed at evolving from a lending platform to a licensed microfinance bank, Carbon introduced card issuance as a strategy to retain customers and boost transactions. However, the international card provider was costly and had cumbersome processes. As a result, Carbon has chosen to discontinue its Visa card operations and is rethinking its card strategy.

The shift in consumer behavior and the reevaluation of card operations have led to a focus on locally priced solutions and accessible requirements. This trend is evident in the growing popularity of Interswitch's Verve card scheme, with the company issuing 17 million cards for platforms such as Moniepoint and OPay.

Carbon's decision to discontinue its card operations is not aimed at attracting new customers, but delivering an essential service and ensuring customer retention. Cards remain one of the most reliable ways for Carbon's customers to access their funds, particularly for withdrawing cash, as bank transfers gain popularity.

The digital bank faces stiff competition from the Central Bank of Nigeria's Afrigo card, as both options offer locally priced solutions and more accessible requirements. The Afrigo card, a competitor to the Verve card, has also gained traction in the market. Despite the competition, Carbon describes the move to introduce card issuance as "a big step" in its evolution.

However, Carbon has not disclosed its new card issuer. Fintech companies often partner with logistics firms to deliver cards, which increases overall costs. It remains to be seen who Carbon has partnered with for its new card issuance.

The Central Bank of Nigeria's Afrigo card is not the only competitor to the Verve card. Many fintech companies have reevaluated their card operations due to rising dollar costs for issuing Mastercard and Visa cards. This has led to a focus on locally priced solutions and accessible requirements, making the market more competitive.

Despite the challenges, Carbon operates without an agent network or physical branches, relying on its digital platform to serve its customers. This strategy has allowed the bank to keep costs low and focus on providing a seamless digital experience for its users.

In conclusion, Carbon's decision to resume card services is a response to customer demand and a strategic move in a competitive market. The focus on locally priced solutions and accessible requirements is a trend that is likely to continue as fintech companies adapt to changes in consumer behavior.

Resumed Operations for Carbon in Card Services, Offering an Improved Experience to Nigerian Clients After a Six-Month Hiatus