By 
Nigerian digital bank Carbon has resumed issuing debit cards through a new partnership with Verve, the Interswitch-owned card scheme, following a nine-month pause in its card operations. The move marks a strategic shift from its previous reliance on Visa, which the company abandoned due to high costs and complex processes.
Carbon, which operates without a physical branch or agent network, had faced limitations in cash withdrawals and online transactions after discontinuing its debit cards. The decision to reintroduce card services underscores the continued relevance of debit cards in facilitating customer access to funds, despite the increasing adoption of contactless payments and bank transfers.
“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,” said Lotanna Anuforo, Carbon’s content manager, in an interview with TechCabal in November 2024.
The rising cost of international card schemes like Mastercard and Visa—whose dollar-based fees add significant expenses—has driven many Nigerian fintechs to explore more affordable alternatives. Carbon initially launched debit card issuance in August 2021 after transitioning from a digital lender to a licensed microfinance bank, aiming to enhance customer retention and transaction volumes. However, maintaining partnerships with international card providers proved financially burdensome, especially for fintechs operating without physical branches.
Beyond card scheme costs, fintechs must also contend with logistics expenses for card distribution and dispute resolution fees exceeding $500 per case when using international providers. These operational challenges have fueled a shift toward Verve, which has issued over 70 million cards and dominates Nigeria’s payment card landscape. The local card scheme’s Naira-based pricing model makes it a cost-effective solution, prompting adoption by major fintechs and banks alike. Moniepoint and OPay, for instance, have collectively issued over 17 million Verve cards, while most traditional banks in Nigeria also offer Verve-branded cards.
Carbon’s renewed focus on debit cards, despite industry trends favoring digital payments, highlights their continued importance in financial service delivery. While fintechs navigate cost and operational hurdles, debit cards remain a critical touchpoint for customer engagement and accessibility in Nigeria’s evolving payments ecosystem.
Comments