Connect with us

News

Neobank, Carbon, Shuts Down Debit Card Operations in Nigeria

Published

on

Ngozi-Dozie
Nigerian fintech company, Carbon, has announced the cessation of its debit card operations in Nigeria

Nigerian fintech company, Carbon, has announced the cessation of its debit card operations in Nigeria, two years after their initial launch. This decision was disclosed by Carbon’s co-founder and CEO, Ngozi Dozie, via a Substack post on Wednesday.

Although Dozie did not explicitly detail the reasons behind discontinuing the card service, his post suggested that the introduction of the cards might have been a strategic misstep. Additionally, the current forex challenges, which increased the operational costs due to the dollar-denominated card expenses, likely played a significant role in this decision.

“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.

Advertisement

Founders’ Errors

Dozie reflected on common mistakes made by founders, including making decisions based on insufficient information without proper analysis. He admitted that if he had thoroughly analyzed the industry, he might have avoided launching the card operations.

“Nigerians already have many debit cards,” he acknowledged. “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.”

Dozie also noted that he might have believed that offering a debit card would increase customer trust in Carbon, akin to traditional banks. He advised fintech startups to critically analyze the industry before venturing into debit card offerings.

Advertisement

Context and Comparison

Several other fintech companies like Kuda, Moniepoint, and OPay have rolled out debit cards for their customers. Unlike Carbon, which partnered with the international card provider Visa, these companies have opted for Verve cards, providing them with a local advantage amidst the current forex issues.

When Carbon launched its debit cards in August 2021, it marked a significant step in transitioning from Nigeria’s biggest digital lender to a microfinance bank licensed by the CBN. The debit card allowed Carbon bank account holders to access funds via online and offline channels like ATMs and POS machines. Carbon aimed to enhance user experience, a common issue among customers of financial institutions, and build on its customer base of 3 million users by offering a more comprehensive banking experience.

Carbon’s decision to discontinue its debit card operations underscores the complex challenges fintech companies face in balancing innovative services with operational realities. This move serves as a cautionary tale for other fintech startups considering similar ventures, highlighting the importance of thorough market analysis and strategic planning.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Israel and Hamas Reach Historic Ceasefire and Hostage Release Agreement

Published

on

Israel and Hamas Reach Historic Ceasefire and Hostage Release Agreement

U.S. President Joe Biden announced a breakthrough ceasefire agreement between Israel and Hamas, marking the end of 15 months of conflict. Speaking optimistically, Biden declared, “Soon the hostages will return home to their families,” highlighting the monumental nature of the deal.

  • A complete ceasefire will take effect, accompanied by the withdrawal of Israeli forces from Gaza.
  • Hamas will release all hostages, while Israel has agreed to free Palestinian prisoners in return.
  • Qatar’s involvement ensured that provisions for humanitarian aid to Gaza were included in the agreement.

Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Al-Thani held a news conference in Doha, confirming the details:

  • The deal sets the stage for a long-term truce, with the ceasefire beginning on January 19.
  • Thirty-three Israeli hostages will be freed in the first phase of the agreement, with subsequent phases expected to follow.
  • Qatar emphasized its commitment to delivering aid to Palestinians and fostering adherence to the agreement by both parties.

While the success of the deal beyond the first phase depends on the cooperation of all parties, negotiators have expressed cautious optimism.

Continue Reading

News

Signs of Progress as Gaza Ceasefire Negotiations Continue in Qatar

Published

on

Signs of Progress as Gaza Ceasefire Negotiations Continue in Qatar

Efforts to broker a ceasefire in the Gaza Strip have intensified as negotiators from Israel and Hamas convene in Qatar, with indications that an agreement may be imminent. The talks, mediated by Qatar and supported by U.S. diplomatic efforts, have reached a critical juncture, according to officials familiar with the negotiations.

For the first time in the ongoing conflict, delegations from Israel and Hamas have engaged in indirect discussions within the same building, signaling a significant shift in the dynamics of the talks. Hamas has reportedly softened its stance by dropping the condition for Israeli troops to withdraw entirely from the Gaza Strip before an agreement.

A Palestinian official shared details of the tentative plan, which includes a phased approach to hostilities and hostages:

Advertisement
  • Hamas is expected to release three hostages immediately upon signing the agreement, with additional releases staggered over the following weeks.
  • Israel would begin a partial withdrawal of troops from populated areas, with phased easing of restrictions on displaced residents.
  • Civilians in southern Gaza would be allowed to return to northern areas via designated routes, monitored by a joint Qatari-Egyptian security team equipped with advanced screening technology.
  • Israeli forces would retain positions in key border areas, including an 800-meter buffer zone, during the initial 42-day phase.

Israel has reportedly agreed to release 1,000 Palestinian prisoners, including long-term detainees, in exchange for 34 hostages held by Hamas. The ceasefire agreement also outlines a roadmap for subsequent phases, with further negotiations slated to begin on the 16th day of the truce.

U.S. President Joe Biden has expressed optimism about the progress, describing the deal as “on the brink” of being finalized. He has been in active communication with Israeli Prime Minister Benjamin Netanyahu and Qatar’s Sheikh Tamim bin Hamad Al-Thani to facilitate the discussions.

The resumption of talks in Qatar marks a critical step toward de-escalating a conflict that has caused immense suffering.

Advertisement
Continue Reading

News

LA Fires Death Toll Rises to 16 as Evacuation Orders Expand and Health Warnings Intensify

Published

on

LA Fires Death Toll Rises to 16 as Evacuation Orders Expand and Health Warnings Intensify

The death toll from the ongoing wildfires in Los Angeles County has risen to 16, as evacuation orders now affect 150,000 residents. The Palisades and Eaton Fires continue to wreak havoc, prompting emergency measures and public health advisories.

According to the California Governor’s Office of Emergency Services (Cal OES), over 700 displaced residents are being sheltered in nine facilities across the county. Evacuation orders remain in effect for areas at immediate risk, while evacuation warnings advise nearby residents to prepare to leave if conditions worsen.

The Kenneth and Hurst Fires have seen progress in containment, allowing authorities to lift evacuation orders and warnings in affected areas.

Advertisement

In addition to evacuation efforts, officials have issued critical health warnings:

  • Residents in and around Pacific Palisades have been advised not to consume tap water due to potential fire-related contamination. Bottled water is being distributed at the Westwood Recreation Center and near the Brentwood Country Club.
  • The use of power air blowers, including leaf blowers, has been banned countywide to reduce the spread of ash, smoke, and particulates harmful to respiratory health.
  • The public health department has issued warnings against swimming, surfing, or entering ocean waters along a 20-mile stretch from Surfrider Beach to Dockweiler State Beach. Officials caution that these waters may pose health risks to those who come into contact with them.

Amid the crisis, officials have warned against looting in evacuated areas and price hikes at hotels housing displaced residents. Authorities are working to ensure safety and fair treatment for those affected by the disaster.

With containment efforts ongoing and weather conditions remaining unpredictable, authorities urge residents to stay informed and adhere to all evacuation and health advisories. Resources, including shelters and bottled water distributions, will continue to support those impacted by one of Los Angeles County’s most devastating wildfire events in recent history.

Advertisement
Continue Reading

Trending