Nigerian digital bank Carbon has announced it will resume issuing cards this month, following a six-month hiatus. The fintech paused its card services earlier this year to address issues in its card delivery system and raising customer demand.
“Our international card provider was expensive, and some processes were too cumbersome for the product we want to give our customers,” a Carbon spokesperson told TechCabal. “We looked at the flaws in debit card usage in Nigeria and optimised the experience to make it better for customers and businesses.”
Carbon has revamped its card collection and delivery process. Traditionally it relied on logistics companies for delivery—an approach that added costs to already expensive, dollar-priced card issuance.
Cards remain a vital service for Carbon, which lacks physical branches or an agent network. While bank transfers have grown in popularity, cards remain an important tool for customers to access funds easily.
“Offering cards is not about attracting new customers to Carbon; it’s more of an essential service we provide. It’s about providing convenience and retaining our customers,” the spokesperson added.
Carbon initially launched card services as part of its transition from a digital lender to a licensed microfinance bank. However, rising costs of issuing Mastercard and Visa cards, and shift in consumer behavior, have led many Nigerian fintechs to reevaluate their card operations.
Local card schemes like Interswitch’s Verve card and the central bank’s Afrigo card have gained traction as cost-effective alternatives.
While Carbon issued Visa cards before discontinuing its operations, it has yet to confirm whether it will use the same provider for its relaunch. The company declined to disclose its new card issuer.
