After Deactivating ATM Cards, Carbon Resumes Debit Card Issuance 9 Months After
- One of Nigeria’s microfinance banks, Carbon, disclosed that it is moving away from Visa and adopting Verve, a local card issuer owned by Interswitch
- Carbon now joins several Nigerian financial technology firms that have recently issued over 17 million Verve cards.
- The move now positions the company to compete favourably in the local banking and fintech ecosystem
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Legit.ng’s Pascal Oparada has reported on technology, energy, stocks, investments, and the economy for over a decade.
Nigerian digital bank Carbon is partnering with the Interswitch card scheme, Verve, to resume its debit card issuance after nine months of deactivation.
The company revealed in a blog post that it is resuming debit card operations to simplify payments for its customers.
Source: Getty Images
Carbon ditches Visa cards
Carbon has moved away from Visa cards, having previously issued them but terminated the partnership due to high costs and complicated processes.
The bank operates without an agent network or physical branches, limiting cash withdrawals and online purchases.
Carbon discontinued card issuance nine months ago, with experts suggesting this restricted its channels.
However, the resumption of debit card issuance indicates a growth in contactless payments and bank transfers, as debit cards remain one of the most effective channels for customers to access their funds.
According to reports, Carbon has stated that offering cards is not merely about acquiring customers but is an essential service that provides convenience and aids in customer retention.
Nigerian fintech moving away from international card issuers
Nigerian fintechs initially embraced Mastercard and Visa, which appealed to many young Nigerians who enjoy online shopping.
However, escalating maintenance costs for these dollar-denominated international cards and diminished international customer spending have led to a change in perspective.
The company began issuing debit cards in August 2021 after shifting from a loan-based application to a licensed microfinance bank.
Carbon’s cards also compete with bank-issued cards, which fintech clients commonly use as their primary account.
In addition to dollar-denominated charges, Nigerian fintechs without branches must partner with logistics firms to deliver cards, further increasing issuing costs.
Carbon set to compete with Verve cards
These fintech firms also face charges of around $500 from international card companies for logging disputes on their resolution channels.
Experts believe these factors have driven fintechs to shift towards Verve, which analysts state has issued over 70 million cards to strengthen its dominance in the Nigerian market.
Source: Getty Images
Carbon’s transition to Verve, a naira-based debit card, will place it in competition with leading players in the ecosystem such as Opay, Moniepoint, Palmpay, and others, which have issued over 17 million Verve cards.
The strategy of the digital microfinance bank demonstrates that, despite bank transfers and the increasing adoption of contactless payments, financial technology firms still rely on debit cards for sustainability.
CBN increases ATM withdrawal limits
Legit.ng earlier reported that the new N100 ATM off-site withdrawal charges have begun since March 1, 2025.
Imposed by the Central Bank of Nigeria (CBN), the withdrawal charge will see Nigerians and other ATM users charged 100 per transaction for using ATMs not belonging to their banks, otherwise known as off-site ATMs.
Findings show that banks loaded their ATMs with cash as they began the new charges.
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