A Nigerian digital bank, Carbon, is set to resume issuing cards this month after a six-month hiatus. The decision came after revamping its card delivery system to meet increased customer demand, according to a spokesperson from the company.
The spokesperson mentioned that the previous international card provider was costly and had cumbersome processes that did not align with the desired customer experience. Therefore, Carbon optimized its card services to improve the overall user experience for both customers and businesses.
Streamlining its card collection and delivery system was reported to be a focus area for Carbon. Neobanks like Carbon typically collaborate with logistics companies for card deliveries, which can add to the costs due to pricing in dollars.
Issuing cards has been a strategy employed by many neobanks to retain customers and facilitate transactions, especially after acquiring a microfinance license. Despite the popularity of bank transfers, cards remain a convenient channel for customers to access funds, particularly for those using Carbon’s services without physical branches or agent networks.
While the costs of issuing Mastercard and Visa cards in dollars have been rising, there has been a shift in consumer behavior prompting fintech companies to reassess their card operations. The preference for local card schemes like Verve, including Afrigo card by the central bank, has been on the rise due to lower costs and easier requirements.
Carbon’s decision to discontinue its Visa card operations was influenced by the changing landscape, opting to reevaluate its approach. The fintech did not disclose its new card issuer as part of this strategic shift.
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