Cardtonic constructs an all-in-one app for managing various gift cards, electronic devices, and transactions
Cardtonic: Nigerian Fintech Startup Expands its Horizons
Cardtonic, a Nigerian fintech startup founded in 2016 by Balogun Usman and Kayode Faturoti, has been making waves in the gift card trading market. With a customer base skewed towards young people, including students and gamers in their 20s, Cardtonic serves over one million users as of January 2025.
Originally focusing on the gift card trading market, Cardtonic is now planning to monetize its application programming interfaces (APIs), making it possible for other businesses to offer gift card trading directly into their own services. In addition, the startup is set to launch international bill payments and eSIMs by the next quarter, with plans to expand into East Africa.
Cardtonic's expansion into everyday payments includes the introduction of contactless cards. The startup's virtual dollar card, launched in 2024, enables Nigerians to pay for international subscriptions and e-commerce purchases. This card, which charges a card creation fee of $1.5, is cheaper than some other dollar cards in the market.
The Nigerian gifting industry, worth $2.1 billion as of 2024 and projected to grow to $3 billion in the next three years, provides a fertile ground for Cardtonic's growth. The startup leans heavily on influencer marketing and music culture to reach its customer base.
Cardtonic is committed to fostering tech skills in young people. It runs an Upskill programme to train young people in tech skills and is working on a scholarship scheme to support students. The startup employs about 120 employees.
Despite its growth, Cardtonic has no immediate plans to raise external capital. The startup claims to have been profitable for years, though it declined to disclose revenue. Cardtonic operates in a grey area of regulation, falling between fintech and informal global trade. It complies with anti-money laundering (AML) measures and is pursuing licenses where required.
Security is a top priority for Cardtonic. It requires two-factor authentication on accounts and regularly warns customers to keep their cards secure. With its commitment to innovation, community engagement, and security, Cardtonic continues to carve a niche for itself in the Nigerian fintech landscape.
