Until now, aside from overdrafts and loans, Monzo has had no other credit products (which most banks offer). There have been rumors for a while that they may be launching a credit card or a Buy Now Pay later scheme, and now Monzo has launched Monzo Flex: a slight mix of the two.
Monzo will offer a virtual card linked to Monzo Flex, so you can make transactions with Apple Pay or Google Pay. You can then put the purchase right onto an installment plan. (This is not available at the time of writing).
Any transactions switched to an instalment plan will only be covered under the same protections are normal debit card transactions. However, if a purchase is made with the virtual Monzo Flex card, this will be covered with Section 75 (as a credit card purchase would be) on all eligible purchases.
Monzo Flex will allow users to split transactions into 3 types of instalment plans, being:
Monzo will allow customers to edit instalment plans at any time. It is also possible to make the instalment period longer or shorter and you can pay off plans early without any fees.
Instalments can be created for most transactions made with Monzo in the last 14 days with a minimum value of £30.
The transaction amount will immediately be refunded to your account, then the first instalment will be charged and then monthly thereafter.
Monzo offers customers an initial ‘credit limit’ which can then be used with Monzo Flex. Each instalment is not a case by case basis, unlike other BNPL (Buy Now Pay Later) products.