Monzo issues debit feature, then asks consumers to avoid it
Monzo has brought back a popular feature that provides more flexibility in how its customers load money to their accounts, though it's doing so without full enthusiasm.
Customers can top up their upgraded Monzo accounts from another debit card, or through Apple Pay and Android Pay.
While stating that this feature gives customers flexibility as it lets them pay money into their Monzo accounts faster and more conveniently, the London-based Monzo also appeals to its customers to use the service sparingly and for “last minute emergencies” since this feature will cost them around $30 per customer each year due to processing fees.
"It isn’t sustainable for us to keep covering the costs if everyone only uses top ups to add money to their Monzo accounts,” the company said in a release.
Monzo is making inroads into the U.K. banking sector. Despite a series of challenges in the past year ranging from transaction-disrupting outages to running out of cards, Monzo contends it has 450,000 sign-ups for its new card account, which is past its initial projections. About 18,000 users have tested the account, and the migration of existing prepaid users to the new card should take about two months.