Carbon, a prominent Nigerian fintech firm, has announced that it will discontinue its debit card services in Nigeria just two years after its initial launch. The co-founder and CEO, Ngozi Dozie, disclosed this in a Substack post on Wednesday.
While specific reasons for the closure were not detailed, Dozie hinted at challenges such as operational costs denominated in USD amid Nigeria’s current forex difficulties, which likely influenced the decision.
“In hindsight, with our card operation costs in USD$, I question the strategy of neobanks pushing into cards. Was this the right move for all of us, or was Carbon just unfortunate?” wrote Dozie, reflecting on the decision.
Founder’s Reflections
Acknowledging potential missteps, Dozie suggested that insufficient industry analysis might have led to the decision to launch the card service despite Nigerians already having numerous debit card options.
“If I had conducted a thorough analysis, I might not have been as enthusiastic about introducing a strategy that essentially offers consumers another debit card option. The decision could have been the same, but with a more cautious approach towards potential risks,” Dozie explained.
He advised aspiring fintech startups to rigorously evaluate industry dynamics before venturing into similar initiatives.
Other fintechs, such as Kuda, Moniepoint, and OPay, continue to provide debit card services to their customers. Unlike Carbon’s partnership with Visa, these fintechs issue Verve cards, leveraging local advantages amidst Nigeria’s forex challenges.
Carbon’s Debit Card Launch
Carbon initially launched its debit cards in August 2021 as part of its transition from Nigeria’s largest digital lender to a microfinance bank licensed by the Central Bank of Nigeria (CBN). The cards enabled account holders to conduct transactions online and offline through ATMs and POS machines, enhancing user experience.
At the time of the launch, Carbon aimed to expand its customer base, which stood at 3 million users, by offering a comprehensive banking experience tailored to diverse needs.
