Carbon resumes issuance of debit cards in partnership with Verve

Carbon, the Nigerian digital bank known for its loans-led approach to banking, has partnered with Verve, the Interswitch-owned card scheme to resume issuing debit cards nine months after pausing card operations, the company told customers in a February blog post. The startup previously issued Visa cards but ended that partnership due to high costs and its “cumbersome” processes.

Carbon operates without an agent network or physical branches, limiting channels for cash withdrawals and online shopping. Discontinuing cards further limited its channels and the resumption of card issuance shows that despite the rise of contactless payments and bank transfers, debit cards remain one of the most effective channels for customers to access their funds.

“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,” Lotanna Anuforo, Carbon’s content manager, told TechCabal in November 2024.

Carbon did not immediately respond to a request for comments.

Nigerian fintechs once saw Mastercard and Visa cards as a must-have to acquire young Nigerians who loved to shop online. However, rising costs for maintaining these international card schemes—which charge dollar-based fees—and reduced international customer spending have changed that thinking.

Carbon began issuing debit cards in August 2021 after transitioning from a lender to a licensed microfinance bank to retain customers and drive transactions on its platform. Its cards also competed against bank-issued cards, which fintech customers often use as their primary account.

Besides dollar-based costs, fintechs without physical branches must partner with logistics companies to deliver cards, increasing issuing costs. They also face a $500+ fee charged by international card schemes for logging disputes on their resolution channels.

These factors have driven a shift toward Verve, which has issued over 70 million cards, cementing its dominance in the Nigerian market. Carbon’s switch to Verve, which charges in Naira, continues a trend of major Nigerian fintechs and banks opting for local card solutions. Moniepoint and OPay have issued over 17 million Verve cards, while most Nigerian banks issue Verve cards for customers.

Carbon’s shift in its debit card strategy highlights that despite the rise of bank transfers and the growing adoption of contactless payments, fintechs still need debit cards—for now—despite the costs and operational challenges.

Get the best African tech newsletters in your inbox

ObadeYemi

Adeyemi is a certified performance digital marketing professional who is passionate about data-driven storytelling that does not only endear brands to their audiences but also ensures repeat sales. He has worked with businesses across FinTech, IT, Cloud Computing, Human Resources, Food & Beverages, Education, Medicine, Media, and Blockchain, some of which have achieved 80% increase in visibility, 186% increase in month on month sales and revenue.. His competences include Digital Strategy, Search Engine Optimization, Paid per Click Advertising, Data Visualization & Analytics, Lead Generation, Sales Growth and Content Marketing.

Share
Published by
ObadeYemi

Recent Posts

Apps push retail investments to ₦516.5bn on Nigeria’s stock market

Retail investors are tapping into Nigeria’s ₦89.06 trillion stock market as apps lower barriers to…

11 hours ago

How to create a content style guide [+ free guide & examples]

Every content team has a different idea of what ‘on brand’ means — until you…

16 hours ago

I tested the top 14 AI chatbots for marketers [data, prompts, use cases]

I remember when ChatGPT first launched. The entire marketing community was split on whether they…

16 hours ago

AyaHQ is raising $10 million to build a Web3 talent ecosystem

AyaHQ, a pan-African Web3 talent development startup, is in talks with investors to raise $10…

1 day ago

Don’t just grow to grow: Real talk from a serial founder

There are some lessons you only learn when life hits you hard. This week’s master…

2 days ago

Correction: After turbulent year, Leatherback shifts to enterprise remittance under new leadership

In June, Leatherback, the UK-headquartered cross-border fintech once mired in fraud investigations, unveiled new executives…

2 days ago