Nigerian digital bank Carbon set to resume card issuance after six-month pause
Carbon, the Nigerian digital bank, will resume issuing cards this month, six months after halting its card services.
The decision followed changes to its card delivery system and rising customer demand, the company told TechCabal.
Spesking on the termination of the initial card issuance process, a spokesperson for Carbon, said;
“Our international card provider was expensive and some of the processes were too cumbersome for the product we want to give our customers. We looked at the flaws in debit card usage in Nigeria and optimized the experience to make it better for customers and businesses.”
Like many neobanks, Carbon began issuing cards to customers after obtaining its microfinance license.
At the time, the fintech described it as “a big step” in its transitioning from a lender to a licensed microfinance bank.
“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.
For Carbon’s customers, the card was an easy option to access the funds in their accounts as Carbon operates without an agent network or physical branches.
However, the consistent rise in exchange rates shot up the costs of issuing Mastercard and Visa cards .
Also, fintech companies without branches, typically partner with logistic companies to deliver cards. This adds to the already high costs to issuing cards priced in dollars
This hike in cost and a change in consumer behaviour, made most fintechs reevaluate their card operations.
This reevaluation has boosted the popularity of Interswitch’s Verve card scheme, offering local costs and more accessible requirements.
The company has issued over 17 million cards for Moniepoint and OPay.
Carbon chose to discontinue issuing Visa cards and reroute its operations.
According to sources, the fintech has also now refined its card collection and delivery system.
The fintech is yet to disclose its new card issuer.