Debit Cards, Once A No-Brainer For Africa’s Hottest Fintechs, Turn Nightmare
- Rise announces discontinuation of virtual card services by September 30, 2024.
- Carbon pulls the plug on its debit card operations earlier this year.
- High operational costs and exchange rate volatility cited as reasons for exiting card services.
The trend of fintechs moving away from debit card services highlights a critical need for these companies to reassess their business models in light of economic realities. While the initial enthusiasm for card services was understandable, the ongoing challenges suggest that a more sustainable approach is necessary for long-term success. This pivot could ultimately lead to more innovative financial solutions tailored to the unique needs of African consumers.
