Carbon’s Debit Card Relaunch: A Cost-Driven Shift or a Necessary Compromise?

After nine months, digital bank Carbon has resumed issuing debit cards, this time through Verve, a local card scheme owned by interswitch. The move marks a significant departure from Carbon’s previous visa partnership, raising questions about whether this is a strategic cost cutting measure or a response to the shifting fintech trend in Nigeria.

For years, fintechs in Nigeria favored Visa and Mastercard, associating them with global acceptance and a tech-savvy customer base. However, maintaining these partnerships has become increasingly expensive and complex from foreign exchange costs to operational costs and even dispute resolution fees.

Carbon’s shift to Verve, which processes payments in Naira, removes forex risks and lowers operational costs. However, it also means giving up the international usability that Visa offered—a potential drawback for digitally savvy users who rely on global transactions.

Local Cards Are Rising, But Are They the Future?

Carbon is not alone in this shift. Other major fintechs and banks have doubled down on Verve as well. Moniepoint and Opay have issued over 17 million Verve cards. Most Nigerian banks now default to Verve for local transactions. Which has resulted in over 70 million cards in circulation, making it the dominant domestic card network.

However, while Verve works for local transactions, it lacks Visa’s global reach, limiting options for customers who shop internationally.

 Is This a Long-Term Strategy or a Temporary Fix?

Carbon’s content manager, Lotanna Anuforo, confirmed that issuing cards is about customer retention, not growth. This suggests fintechs are keeping cards to meet existing user expectations, even as digital payments gain ground.

The bigger question is: How much longer will fintechs need physical debit cards at all? If mobile and contactless payments continue to rise, this could be one of the last major shifts before Nigeria moves beyond plastic entirely.