Is Carbon the Future of Banking in Nigeria?
By Adebayo Adetunji
I’m not the kind of person who jumps on every financial app that promises ease and quick cash. Growing up in Lagos, you quickly learn to separate the real from the fake, especially where money is involved. However, after a friend recommended Carbon (formerly Paylater) and praised their loan services, I decided to give it a shot. It’s been a few years now, so I think I’m in a good position to tell you what’s good, what’s bad, and what you should probably think twice about before downloading the app.
What is Carbon?
For those who don’t know, Carbon is a digital financial platform that offers banking services, instant loans, bill payments, investment options, and even health insurance. It’s all in one app, and their main selling point is convenience. You don’t need to queue at a bank or fill out endless forms like you’re applying for a visa. Everything happens on your phone.
The app is available for both Android and iOS users, and setting it up is pretty straightforward. You just need your phone, BVN (Bank Verification Number), and some basic personal details. That’s it. From there, you can access their services, provided you meet their criteria.
My Experience – The Good Stuff
Let’s start with what Carbon gets right. First of all, ease of use. The app is simple to navigate. Even if you’re not very tech-savvy, you’ll figure it out without stress. The interface is clean, and you can find what you’re looking for without wasting time.
Now, about their loans. I won’t lie, this is Carbon’s strongest area. The first time I applied for a loan, I was skeptical. I wasn’t sure if they’d approve it because, let’s face it, Nigerian lenders are not exactly known for being generous. But surprise, surprise, the loan was approved within minutes. No collateral, no guarantor, just my BVN and a good credit history. The money landed in my account almost immediately.
The repayment terms are flexible too. You can pay back in installments, and they’ll even reward you for paying on time with lower interest rates in the future. I’ve used their loan service multiple times now—sometimes to sort out unexpected expenses, and other times to fund small projects. It’s reliable, and that’s saying a lot.
Another thing I like is the investment feature. Carbon lets you save and invest your money at decent interest rates. The rates are competitive—better than what you’d get with most traditional banks in Nigeria. And your returns are paid out promptly. For someone like me who’s trying to grow wealth gradually, this is a big plus.
The Not-So-Good Parts
That said, Carbon isn’t perfect. Let’s talk about their interest rates on loans. While they’re transparent about the rates (you’ll see the exact amount you’ll pay back before taking the loan), the rates can be on the high side, especially if you’re borrowing for the first time or have a low credit rating. I understand they’re taking a risk by giving out unsecured loans, but still, sometimes the rates feel like a punishment.
Another issue I’ve had is with their customer service. While they’re generally responsive, there have been times when I had issues that took longer than expected to resolve. For example, there was a time a payment I made through the app didn’t reflect immediately. I reached out to their support team, and while they eventually sorted it out, the back-and-forth was exhausting. In Nigeria, where people rely on their money to handle emergencies, delays like that can be very frustrating.
Also, I’ve noticed that Carbon seems to favor short-term loans over long-term ones. If you’re looking for a significant amount to fund something big, you might not find what you’re looking for here. They’re better suited for smaller, quick loans.
Lastly, while the app works smoothly most of the time, I’ve experienced occasional glitches, especially when trying to update my account details or make a quick transaction. It’s not frequent, but it’s worth mentioning.
Safety and Trust – Can You Trust Carbon?
When it comes to online financial services in Nigeria, the biggest question is always: “Is my money safe?” With Carbon, I feel relatively secure. They’re licensed by the Central Bank of Nigeria (CBN), which gives them some credibility. They also use encryption to protect your data, so your BVN and personal info are not floating around for Yahoo boys to grab.
That said, I’d advise you to enable two-factor authentication and keep your login details private. This is just standard practice for any online financial platform—not just Carbon.
Carbon’s Role in Nigeria’s Financial Landscape
One thing I respect about Carbon is how they’re helping to bridge the gap between traditional banking and the unbanked population in Nigeria. Let’s face it: not everyone has access to a bank account or the time to deal with the inefficiencies of our banking system. Carbon provides an alternative that’s fast, convenient, and accessible.
In a country where financial inclusion is still a major challenge, apps like Carbon are playing a crucial role. They’re giving people access to credit and financial services that would otherwise be out of reach. For that alone, they deserve some accolades.
Should You Use Carbon?
So, is Carbon worth it? In my opinion, yes—with some caveats. If you’re looking for a quick, hassle-free loan or a convenient way to manage your finances, Carbon is a solid option. But if you’re not careful, the high interest rates can catch you off guard. Also, don’t rely on it for large, long-term financing because that’s not really what they’re built for.
One piece of advice: use it wisely. Just because the loans are easy to get doesn’t mean you should take one every time you’re short on cash. Remember, you still have to pay it back—with interest.
At the end of the day, Carbon is like that friend who’s always there when you need urgent help, but you wouldn’t want to depend on them for everything. They’re reliable, but not perfect.
Over to You
That’s my take on Carbon. What’s yours? Have you used the app before? Did it meet your expectations, or was it a letdown? I’d love to hear about your experience. Share your thoughts!