Formerly known as Paylater, the Nigerian Fintech startup, Carbon, has introduced a 1 per cent transaction fee for each time a user transfers funds to their Wallet on the app. This became effective from yesterday, the 5th of August, 2019.
The Carbon mobile app was launched three years ago with a goal to empower users with the financial access needed to pursue a life of prosperity and dignity. To sharpen this focus, Carbon launched its current best feature – the Wallet, in December 2018. This Wallet feature allows Carbon users to store value in the app, and benefit from the cheapest financial transactions in Nigeria.
Prior to the launch of the Digital Wallet feature, performing transactions on the Carbon mobile app required users to employ their bank debit card, or transfer money from a separate bank account to lock in an investment or make a loan repayment. Since its launch in December, the funding for the Wallet was free and wallet top ups attracted no fees.
On the reason for this recent change, the company explained that the no-funding Wallet service came at a significant cost as the company had to pay fees to the debit card issuer and payment processors for each card that a user top-up using Carbon. The company further said that its fast-growing customer base has made managing the cost incurred from the service “unsustainable”, hence the “reluctant” decision of making a little change by passing the cost to customers.
Nonetheless, users still won’t be charged for SMS fees, maintenance fees, and other charges common with the traditional banks. According to the company in a statement, “this change will allow us to redirect resources into faster innovation and make Carbon the perfect financial partner”.
Meanwhile, the company further disclosed that it will be releasing new features, including allowing users to fund their wallet directly from their bank account through either bank transfers or USSD, without the need for card top-ups.