Nigerian fintech company, Carbon, has shut down its debit card operations in Nigeria two years after its launch.
According to Carbon’s Co-Founder and CEO, Ngozi Dozie, he was now not sure why all neobanks are introducing cards.
“When I take a step back with the benefit of hindsight (and a card operation bill denominated in USD $), I question why practically all neobanks are pushing cards or even getting into it. Was this the right strategy for ALL of us, or was Carbon just unlucky?” Dozie wrote in Substack.
Reflecting on the decision, Dozie pointed out that many founders often make the mistake of launching products without thorough analysis. He admitted that had he properly evaluated the industry beforehand, he would not have initiated the card operations. In hindsight, Dozie recognized that Nigerians already had numerous debit card options available to them.
“If I had done the analysis…and truly evaluated the opportunity, I don’t think I would have been that gung-ho about pushing a strategy to provide consumers with their fifth debit card. The decision might have been the same, but perhaps with more respect for the potential risks,” he wrote.
Maybe I had a scoop that if we launched a debit card, customers would trust Carbon more. Because, hey—just like those big banks you trust, I have the same bright, shiny card, marketed on billboards with happy-go-lucky youth with funky haircuts and bright clothing.”
Today, many fintechs in Nigeria including Kuda, MoniePoint, and OPay have introduced debit cards for their customers, in their case powered by Verve, Africa’s largest card scheme by Interswitch with acceptance in Nigeria, across Africa, Europe and America.
Carbon, in contrast, previously partnered with VISA, an international card provider, for its card offering.
In early 2024, as reported by BitKE, Carbon acquired Vella Finance after it terminated its crypto services to focus on SME banking.
🇳🇬ACQUISITION | Nigerian Fintech, Carbon, Acquires Vella Finance and Launches AI-Powered SME Banking Platform 🇳🇬
Vella Finance, which last October [2023], as reported by BitKE, terminated its crypto services to focus on SME banking, will transition business customers to Carbon… pic.twitter.com/Xom2ldpxHi
— BitKE (@BitcoinKE) February 16, 2024
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