July 25, 2021 All Things Fintech in Africa

Carbon, formerly Paylater now charges One Percent Transaction fee.

 

Introduction

Carbon, the lending platform formerly known as paylater started an app which not only allows one to borrow loans. But had features that enabled users to make certain payments.

When it launched its wallet feature where users can store value on the app, it was totally free. But now, Carbon says it’s not sustainable and has added a sub-charge; a one per cent transaction fee.

What is Carbon about?

Carbon is a fully-functional e-wallet which allows you to store value on Carbon. And perform all your financial transactions and earn discounts and rewards for use.

Carbon begun as a lending platform before it rebranded from paylater in April. The loans that were being borrowed on the platform were used to fund certain activities which were later made available on app. Hence, its transition from a lending platform to a multi-purpose app to facilitate transactions like: fund transfer, airtime top up, bill payments. The new feature even allows the users to set a recurring payment plan, which is automatically charged daily, weekly or monthly.

Why is Carbon now charging per transaction?

Carbon has transited into a full digital banking platform, after it had raised US$5 million in debt funding and acquired Nigerian payment startup Amplify.  Its latest wallet feature allows storing value in the app. At first funding the wallet was free, but since it became unsustainable Carbon now charges one percent on a transaction. The totally free sub charge of the wallet funding came at a significant cost; Carbon had to pay the debit card issuer and payment processors for every card top up done on the app.

While it was easy when few people transacted that way, it became pretty difficult to sustain a thousand active customers using wallets.  Hence, the readjustment which introduces sub charges to be incurred by users per transaction.  You will not be charged for account maintenance, SMS charges which is a familiar tragedy among traditional banks.

The startup is looking to make transactions cheaper and easier by introducing new features too; users can fund their wallets directly from their account with a USSD code or bank transfers, removing the need for card top-ups, providing users with a debit card to perform payments anywhere, launching an QR payments to let users pay merchants across the country by scanning a simple code.

 

 

 

 

Banner
Related Posts

WorldRemit Goes to a Partnership with AliPay

February 1, 2020

February 1, 2020

WorldRemit Goes to a Partnership with AliPay On January 22, Alipay entered a new partnership with  WorldRemit, a online remittances...

PayPal Becomes the First Foreign Company to Secure Chinese Payments License

November 27, 2019

November 27, 2019

  Paypal earns a Chinese Payment License after it gains a 70% stake in Guofbao Information Technology Co (Go Pay)....

Allea Credit: How to get Instant Cash for Expenses

May 7, 2019

May 7, 2019

Allea Credit: How to get Instant Cash for Unexpected Expenses Allea Credit is that one-way ticket to a quick emergency...

Top 10 Interesting facts about Interswitch Nigeria

April 11, 2019

April 11, 2019 1

Top 10 Interesting facts about Interswitch Nigeria Today many payment processing companies exist, but Interswitch Nigeria has made an incredible...

Ghana Launch a Contactless Payment System Curb the Spread of COVID

March 30, 2020

March 30, 2020

  The Vice President of Ghana, Dr. Mahamudu Bawumia has launched a contactless payment system to encourage the adoption of...

Zazu Raises $1.4m in an attempt to expand their user base

December 11, 2019

December 11, 2019 1

  Zazu fully started as a digital banking space in 2107.  Previously, Zazu was a platform where farms could connect...

Hollaport Launches in Lagos, Announces its Plan to Deepen Financial Inclusion

July 12, 2019

July 12, 2019

Kabiru Rabiu of BUA Group Launches Hollaport App Kabiru Rabiu, Group Executive Director of Bua Group, a leading Nigerian conglomerate...

World Remit: A FinTech Startup Revolutionizing Money Transfer and Remittance  

April 17, 2019

April 17, 2019 1

World Remit, in short, is money transfer and remittance made easy. Within minutes of transactions, funds are being directly deposited...

FlutterWave  yet again secures a $35 million series round and a Partnership with WorldPay

January 24, 2020

January 24, 2020

  FlutterWave, a San Francisco and Lagos-based fintech startup has secured a $35 million Series  B round  and a partnership...

Visa partners with PalmPay to drive financial inclusion across Africa

April 26, 2019

April 26, 2019

Visa partners with PalmPay to drive financial inclusion across Africa Visa, the global payments technology company and PalmPay, a new...

Tala halts its mobile Lending Operations in Tanzania

December 2, 2019

December 2, 2019

Despite raising $21o million, Tala, the lending and financial accessibility startup providing under-represented people loans has halted its lending operations...

SafriCom has partnered with Ria Money Transfer to Improve International Money Transfers through M-Pesa

January 31, 2020

January 31, 2020

Safaricom has partnered with Ria Money Transfer, to empower more than 26 million M-PESA customers to receive international money transfers...

Five Online Payment Platforms in Nigeria and How to Use Them

April 5, 2019

April 5, 2019 3

Table Of ContentsI would be writing on Five Online Payment Platforms in Nigeria and How to use them to make...

6 Facts About Paystack Nigeria You Never Knew Before

April 19, 2019

April 19, 2019 2

6 Facts About Paystack  Nigeria You Never Knew Before As the new kid on the block when it comes to...

Remitly Partner with Xpress Money to Expand Cross-border Money Services

December 2, 2019

December 2, 2019

Remitly is an online remittance service which allows users to transfer money from United states to Nigeria , while Xpress...

Comments

Leave a Reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.