The thread about Monzo getting into the booming buy now, pay later market

I wonder how much extra you’ll have to pay just because it’s in the Monzo app and convenient…

Oh you know it’ll cost more than securing money from elsewhere, otherwise why do it?

The thing that gets me… this isn’t the stuff that ‘original monzo’ would set out to do, it’s going to be interesting to see how the forum spin this into a positive.

I mean, sure… it’s good for the bank (you’d hope), but not so much for the user.

Actually who am I kidding… they put open banking behind a paywall and the user base laps it up :man_facepalming:

I can see the posts on the Monzo community before they’re even posted

“I know that Monzo are more expensive than Klarna but I just love them sooo much I have to pay for this. I don’t even need this credit, I just paid that as a way to support Monzo”*

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Seems like a decent product. Has some unique aspects that I think folks will like. The offer isn’t as good as the standard one you get with PayPal, which is just 4 months interest free rather than instalments.

Amazon is also becoming a competitor in this space, and an attractive one too, by going beyond your typical 3 months interest free instalments

Excited to give this a try nonetheless. Will be a nice supplement to PayPal. And honestly, after a recent experience trying to raise a section 75 claim, I’m happy to look at moving my credit purchases elsewhere. Not sure 3 months are enough to allow savings rates to beat out Amex rewards though.

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Interesting that you still need to pay the full amount up front, and can then convert it to credit later.

A previous incarnation had the same, and I suspect that’s why it never took off.

They promise a virtual card to go with this :soon: but we all know how flexible that word is …

It’s that 19% for 6/12 months…

James Franco Omg GIF

Seems like it. Pretty decent rate. Looks like you can also pay it back quicker to reduce the interest you pay. Not bad.

sorry dude, 19% may be a standard rate but it’s not a good one when it comes to credit

Even Klarna is 18.9%… > Monzo…

Edit: and I wouldn’t use them either

What is unique about it? It seems very similar to Curve Credit…

The hot coral of course

I presume they only make money if people take the 6-12 month option :thinking:

I’m confused… Do you pay for the whole transaction and then convert it to credit (like Starling used to offer) or do you in effect have a virtual credit card like PayPal credit?

As I understand it: at the moment it’s the former, but they aim for the latter :soon:

Still don’t understand why someone would opt for this as opposed to taking an interest free credit card… presumably if you’re pre-approved for credit for this, you’ll be covered for a credit card

I’m actually not too familiar with curve credit, so it could be similar for all I know.

The unique aspect to me, is the ability to retroactively assign a transaction to credit for section 75 protections should you need them. PayPal and Klarna don’t do that.

The next is the virtual card you can add to Apple Pay and use in physical stores. Can’t do that with Klarna or PayPal either.

To me it feels like a really nice mesh between a credit card, and BNPL products. Or is at least a better take than PayPal credit in that respect.

Is Curve Credit the same? May need to look into that!

I doubt this is actually gonna work. I think section 75 applies if you use the virtual card when you purchase, but for everything else I suspect you’ll be stuck with chargebacks

I was under the impression from the news article that that’s how it works. :thinking:

Something to get clarity on, and they’re quite responsive to questions today, so will ask.