Carbon ends debit card operations in Nigeria

Carbon, a Nigerian fintech company, has ended its debit card operations in Nigeria two years after launching the service.

The bank’s co-founder and CEO, Ngozi Dozie, disclosed the development in a post on Wednesday, June 19, 2024.

CEO regrets launching debit cards

Dozie noted the challenges in operating a debit card in the fintech ecosystem, suggesting that the move might have needed to be corrected.

The company operated a dollar-denominated debit card, which might have pressured it to quit the operation entirely.

Analysts believe the move might have been caused by the country's high cost of maintaining dollar-denominated debit cards. He said he would not have launched the card if he had analysed the situation and the industry, stressing that Nigerians already have too many debit cards.

He asked startups considering launching a debit card to analyse the industry critically.

Top digital banks with debit cards

Other digital banks, such as Kuda, Moniepoint, and Opay, operate debit cards provided by Verve, a local provider. Carbon operates Visa card from an international card provider, making operation costs expensive.

Reports say the bank launched its debit card in August 2021, describing it as a big step in transitioning from Nigeria’s biggest digital lender to a microfinance bank licensed by the Central Bank of Nigeria (CBN).

According to the bank, introducing debit cards was a move to build on its three million customer base by offering a more complete banking experience.

Banks and other currency dealers sell dollars at new rates

Legit.ng previously reported that the Nigerian currency depreciated in the official market after the holidays as the scramble for the dollar increased.

Analysts point to the resumption of business activities as the reason for the increased dollar demand, stating that most businesses and importers already placed requisitions for the US greenback before the holidays.

The naira traded slightly low in the official foreign exchange market at N1,483 to the dollar on Wednesday, June 19, 2024, compared to the N1,473 it traded on Friday, June 14, 2024.