Carbon's debit card suspension questions viability of card business for fintech startups
- Nigerian fintech Carbon suspended its debit card service.
- Fintechs struggle with the cost of card operations and the lack of revenue opportunities.
- Fintechs have faced challenges in acquiring microfinance licenses and have had to bear the cost of producing and distributing cards.
The suspension of Carbon's debit card service highlights the challenges faced by fintechs in the card industry. The high cost of card operations and the lack of revenue opportunities make it difficult for fintechs to sustain card services. However, given Nigeria's dependence on card transactions, it is likely that fintechs will eventually bring back card services in the future.
