October 23, 2019 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

ORide; Nigeria’s Bike hailing Service launched by OPay

June 6, 2019

June 6, 2019 1

ORide, a bike-hailing app launched under the hub of OPay intends to make going around Lagos easier. On the average...

Read These Pros and Cons First If You Have or Are Thinking of Starting a Side Hustle In Nigeria

May 10, 2019

May 10, 2019

Read These Pros and Cons First If You Have or Are Thinking of Starting a Side Hustle In Nigeria Call...

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...

Opay Expands as it launches tricycle hailing service, OTrike in Nigeria

August 25, 2019

August 25, 2019

  Introduction The opera company, the Chinese-backed startup is giving other fin tech startups a clear run for their money...

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...

6 Simple Things You Should Do To Get Better Access to Quick Online Loans in Nigeria

April 19, 2019

April 19, 2019 2

6 Simple Things You Should Do To Get Better Access to Quick Online Loans in Nigeria Have you been trying...

TeamApt Secures Highest Level of License Awarded to any Fintech by Nigeria’s CBN

April 19, 2019

April 19, 2019

Table Of ContentsTeamApt Secures Highest Level of License Awarded to any Fintech by Nigeria’s CBNTeamApt Secures Highest Level of License...

GONA Raises Multi-Million Dollar Investment in Nigeria

August 19, 2019

August 19, 2019

What’s GONA? Gona is a payment platform that enables seamless and cashless payment in public buses. The problem Gona is...

Konga Pay : Features you never knew  about and How it Works.

May 7, 2019

May 7, 2019

Konga Pay is a pilot product launched by Konga.com in 2015 for online shoppers.  Shopping on Konga was made easier...

World Remit: A FinTech Startup Revolutionizing Money Transfer and Remittance  

April 17, 2019

April 17, 2019 1

Table Of ContentsTeamApt Secures Highest Level of License Awarded to any Fintech by Nigeria’s CBNWorld Remit, in short, is money...

Kudi Money; Save, Spend and Borrow

April 22, 2019

April 22, 2019

  Kudi Money is redefining the idea of bank and assisting income earners to save, spend and borrow money.   And...

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...

MOMO, the mobile money service, launched by MTN

September 5, 2019

September 5, 2019 1

On September 29th, 2019, MTN launched its mobile money business MoMo, in Hilton Abuja, Nigeria. The mobile money will allow...

SympliFi launches remittance alternative platform for users Nigeria

September 5, 2019

September 5, 2019

  SympliFi is a  U.K.-based fintech offering  guaranteed loan service to enable residents in the diaspora fund entrepreneurship, education, savings...

Five Online Payment Platforms in Nigeria and How to Use Them

April 5, 2019

April 5, 2019 3

Table Of ContentsTeamApt Secures Highest Level of License Awarded to any Fintech by Nigeria’s CBNI would be writing on Five...

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.