6 Online Banks That Offer Virtual Cards in Nigeria

It is easy to experience ease in banking when you have an online bank account with an instant virtual debit card. Virtual debit cards are top technological innovation in which you do not have to physically hold the card.

Everything is done online from the issuance to the usage, so there is no need to worry about the safety of the card, so it won’t go missing or protect it from theft.

In this article, we’ll talk about online banks that offer virtual debit cards in Nigeria; what virtual debit card is, as well as the pros and cons of virtual debit cards

What is a Debit Card?

A debit card is essentially a conduit for spending money electronically from your bank account, it is a card that allows you to perform debit(outflow) transactions on your checking account.

It is usually a rectangular piece of electronic card issued by a bank to their users that can be used to make purchases of products or services, obtain cash from an automated teller machine, or pay for more items from a retailer.

A debit card typically comes with unique card details that identify the user to whom it is issued.

What are Virtual Cards?

Virtual cards in their simplest description are electronic bank cards (debit or credit) that are not physically issued. This means they share the same electronic features of a traditional or physical debit card, with all the associated card details but only exist online.

Virtual debit cards therefore by limits of design can only be used to complete online debit transactions.

Pros and Cons of Virtual Debit cards

There are great advantages of virtual cards, but as life has taught us better, with every great solution comes the possibility of new problems. Below are some listed advantages of virtual debit cards weighed against their disadvantages.

Pros of Virtual Debit Cards

Below are some listed advantages of virtual debit cards:

1. Free or low cost

For most modern and digital banks, virtual debit cards come free of charge, the typical requirement is usually completing your KYC (Know Your Customer) protocols, despite being free, some banks might require that you have a certain minimum amount before requesting one, while others might charge a little fee for it to be issued.

Usually, this happens if you want to have more than one virtual card on one account with the same bank.

2. Multiple Holdings

As already mentioned, a single user can have more than one virtual card under one checking account with the same bank and can do the same across different banks that offer virtual debit card services.

The advantage of this is that it allows you to segment or separate your online spending by assigning different cards to different billings.

3. Flexibility and Limits setting

Most virtual debit cards come with the ability to temporarily turn them on and off, practically, this means you can pause and continue the ability of that card to perform transactions on the go and in real-time, this feature can prove flexible in a number of ways.

Some virtual debit cards also come with the feature of predetermining the amount that should be spent from them, so aside from deciding how much to fund the checking account, you can simply be at rest by determining the budget for each card ahead of time.

4. Security and Peace of mind

Due to the user-friendly features that come with virtual debit cards, it is easy to be at rest about the safety of your funds, because you can predetermine spending and turn them on and off at will.

Another good part of virtual debit cards is that they are completely online and only exist on your bank apps and online back office or portal, so the worry of missing it or losing it to fraudsters is less of a worry as compared to regular physical cards.

It is also peaceful knowing that you are dealing with one bank and card detail at a time, even in the event of a security breach, it only happens and ends with that card.

Cons of a Virtual Debit card

Below are some listed disadvantages of virtual debit cards:

1. Fraud Can Still Happen

Just as Tyrion Lannister of G.O.T (Game of Thrones) right said “safety is never a permanent state of affairs”, the cyberspace is never without its fair share of bandits and fraudsters working hard at their malicious craft and sometimes they succeed at it, so it will be wise to keep it in mind that this could happen, though it is less likely.

The best-advised practice is to do some research before choosing a bank and also to try and put only what is needed in the checking accounts of your virtual debit cards.

Also, if you don’t set an appropriate time limit and payment limit, the vendor might put fraudulent charges anyway.

2. Not for Use Everywhere

It is already established that by limits of design virtual debit cards are designed to work only in non-physical circumstances, despite being electronic.

Virtual debit cards cannot be used on physical pay points, and this can pose quite a challenge if they are the only options a user has at disposal.

Another part of this limitation is that some merchants and retailers’ businesses online may not accept it on their websites or apps but will rather prefer physical debit cards and this too can be a problem depending on the urgency or essential nature of the bill per time.

So, it is still good practice to have some form of physical card(s) at your disposal to come through when necessary.

3. Limited Availability

As previously mentioned, virtual cards are not yet mainstream in the general banking and financial services world, but it has a fast-growing adoption that has a promising future to become mainstream as more awareness and literacy are created.

So, in practice, it might still be hard to find them and might tell you to open a fresh account with the banks that offer them as part of their service.

Online Banks That Offer Virtual Cards in Nigeria

When shopping for a virtual card, the journey most times begins with choosing the banks that not just offer virtual debit card services, but beyond this, there are some factors to chip into consideration before getting on with one.

One of these reasons should be how long it takes for you to actually get one. Below is a thoughtful list of Banks with instant virtual debit card services. Below is a list of some of the online bank account with instant virtual debit cards in Nigeria.

1. Kuda

Kuda Bank, easily described as the “bank of the free” is a fintech bank physically located in Lagos Nigeria.

Kuda Bank issues an instant VISA virtual Naira card provided you have verified your accounts that takes not more than a day to open, they are available on the bank website, Google PlayStore and Apple Appstore.

2. gomoney

gomnoney, is a fintech bank that is physically located in Lagos Nigeria.

Gomoney issues an instant MASTERCARD virtual Naira card provided you have verified your accounts that takes not more than a day to open, they are available on the bank website, Google Playstore and Apple Appstore.

3. Klasha

Klasha is a fintech bank that is physically located in Lagos Nigeria.

Klasha issues an instant virtual Naira card provided you have verified your accounts that takes not more than a day to open, they are available on the bank website, Google Playstore and Apple Appstore.

4. Alat by WEMA

Alat is an online mobile bank product from WEMA that is physically located in various states across Nigeria.

Alat issues an instant VISA virtual Naira and Dollar card provided you have verified your accounts that takes not more than a day to open, they are available on the bank website, Google Playstore and Apple Appstore.

5. Barter

Barter is an online mobile bank product from unicorn African fintech giants Flutterwave that is physically located in various states across Nigeria and Africa.

Barter issues an instant VISA virtual Naira and Dollar card provided you have verified your accounts that takes not more than a day to open, they are available on the bank website, Google Playstore and Apple Appstore.

6. Opay

Opay is an online mobile bank product from Paycom that is physical agents and offices physically located in various states across Nigeria.