Neobank Carbon shuts down debit card operations in Nigeria.
Nigerian fintech company Carbon has ceased its debit card operations in Nigeria, marking the end of a service launched two years ago. CEO Ngozi Dozie announced this decision through a Substack post, hinting at challenges including high costs due to forex issues and questioning the strategic fit of debit cards for neobanks in general.
Dozie reflected on the decision to introduce cards, suggesting it may not have been the optimal strategy, given the competitive landscape where Nigerians already have multiple debit card options. He admitted that a more thorough industry analysis might have led to a different approach.
Carbon initially partnered with Visa for its debit card offering in 2021, aiming to enhance its digital banking services and expand its user base. However, challenges such as operational costs in dollars amid forex volatility likely contributed to its withdrawal from the card market.
In contrast, other Nigerian fintechs like Kuda, Moniepoint, and OPay continue to offer debit card services, leveraging local advantages with Verve cards amidst similar forex challenges.
Overall, Carbon’s decision underscores the complexities and competitive pressures within Nigeria’s fintech industry, urging startups to carefully assess market dynamics before launching new products like debit cards.
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