Do credit cards in the US have Direct Debit and standing order facilities? Budgeting and detailed merchant data?
There are more things to banking than credit so I think Monzo has a lot to offer you guys in the States.
I may be (again) looking at things simplistically, but I can see a place for Monzo in the US
From what I can gather, US citizens need a checking (current) account to have salary paid into.
Although they seem to use credit cards for most purchases, the credit card bill still needs to be paid
(Monzo direct debit)
They still meed access to cash
(Monzo ATM witdrawals)
Many US cards are still not contactless
(Monzo contactless payments)
They like budgeting tools
(Cue Monzo once again)
Admittedly, Monzo will never be able to compete with the rewards programmes offered in the US, but there is still a place for them.
Lack of interchange is a worry.
Well, in America you can set up direct debit with a bank account which is called ACH here. It’s pretty common to just authorize a company to debit your credit card though for reoccurring payments and receive benefits. For allowing it on car insurance with one company you can save 5%. For some credit cards specifically though, an example is auto pay for my cell phone bill each month. My credit card provides the benefit of insurance for my phone with two $600 claims a year. This is not something that a banking debit card would likely provide.
https://www.wellsfargo.com/credit-cards/features/cell-phone-protection/
Of course my credit card gives detailed information about the merchant. They don’t in the UK?
As I did mention though, budgeting seems to be the only benefit that’s being dangled as an offer. You could always link a credit card to a service like mint though.
Yes to the first and second, the third is changing (US card issuers are finally getting on board with contactless) and the fourth is unfortunately not unique to Monzo.
I also see a place for Monzo here in the US, but I’m not entirely sure it’s with the mainstream. I can see Monzo standing out by going after people who don’t already spend mostly on their credit cards. It’s not just people with bad credit; some people just don’t want credit cards because they think they’ll be tempted to spend beyond their means, there are small shops out there that refuse credit cards for spending below a certain amount (US regulations currently allow for minimum purchase amounts at shops for credit but not debit cards).
And there are ways to bring rewards to debit cards. Discover does it; if I spend on my debit card at a smaller shop that has a minimum for credit cards, I still earn 1% back in rewards. Venmo’s debit card offers 4-5% back at certain merchants, although this list varies. There’s also a local bank in my area that gives you a flat $0.10 back per debit card purchase.
And to add to that, a Monzo Plus US that brings the benefits of a premium credit card to a debit card/bank account certainly has its appeal as well.
Also, overdraft- bring UK-like overdraft pricing to the US and I can see people going for it too. $0.50-$1 a day for going negative with a small free buffer would be amazing compared to banks that charge $30+ a pop even if you went and paid it back the same day.
If people run their Debit card through as credit there is no interchange cap as it will be a MasterCard transaction rather than a Debit Tx.
I would say the merchant data is more detailed. For example I can see the Merchant Category Code.
Many people get paid by paper check, which they cash at a physical bank or check cashing service. Other employers pay employees on prepaid “payroll” cards.
99.99% of ATMs will charge you a fee to withdraw cash if not owned by your bank. Nearly All other online banks refund these fees as it is cheaper than operating their own ATM network. Monzo refuses to do this.
Contactless cards are not widely accepted.
I was really surprised in the UK there was a thing called a planned overdrafts. Going into an overdraft in the US is considered a very bad thing, and the bank essentially fines you for doing so. It absolutely destroys your credit rating. Overdraft in the UK seems like a method of extending revolving credit without being a credit card.
Well, this does exist in the US too, it’s just called an overdraft line of credit at most financial institutions. Applying for one is rather involved since it’s treated as any other line of credit and doesn’t just come with a checking account, and it still costs quite a bit to use (my overdraft line at BMO-Harris charges $10 per use and incurs 18% annual interest), but cheaper than the $30-40 that most banks charge for what is called “unarranged overdraft” in the UK…
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$10 per usage wow! plus interest
This thread has been really interesting 
Learning about the differences between UK and US banking has been a real eye opener.
The fees versus rewards has been especially enlightening.
Others may not agree, but from what I can see, here in the UK, we get a much better deal from our banking system.
Maybe if Monzo could introduce some of the things us Brits have become so accustomed to with banking, maybe, just maybe, they can crack the American market 
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I very rarely cary cash and I almost purely swipe for all my transactions so I feel like my debit card at least 5-6 times a day.
I have my main checking (Simple), a debit card from my back up bank (a local credit union) and credit cards from Chase.
The one future I love from Simple is how I can automate my expenses so that on payday money is automatically taken out and put into a sub account (so my available balance already counts for my bills). This is one the feature that I would like to see from Monzo before making the full jump.
Like others said, I love how innovation and customer focused wise Monzo is. Simple too me is slowly losing its customer focused touch and I feel like innovation/listening to what we want from a bank account has almost halted. This is why I’m lightly exploring other options!
I’d like to see a fresh and aesthetically designed Monzo card after beta is done! I’d hope to get a permanent card looking something like the Mozo logo with card numbers on the back. It maybe just me but I really like cards with numbers on the back!
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How often do you use your debit card?
Only for cash withdrawals at ATMs or as an emergency backup. I rarely am in either of those situations so I do not actually carry my debit cards with me.
How many cards do you have in your wallet, and what are they?
I carry two cards in my physical wallet, my American Express Gold card for everything and my Apple Card for a backup when American Express is not accepted. I carry the same cards in my Apple Wallet, plus my two debit cards (Simple Shared and Simple Personal).
How do you budget your day-to-day spending and how often do you stick to that budget?
My wife and I are devout YNAB users. Previously we used Simple Bank for budgeting but once we switched to primarily using credit cards, the Simple budgeting tools became useless to us. We love the envelope budgeting method so YNAB it is.
What excites you about Monzo?
A marketplace for competitive interest rates with savings accounts. I’ve seen a few screenshots of the competitive market for savings rates within the Monzo app in the UK. Currently we put our emergency fund and short term savings in our Simple Bank savings account. That garners roughly 1.9% APY. Would love to see some competition for that.
What would Monzo need to do to be the first card you pull out of your wallet when you go to pay at the store?
Rewards unfortunately. Right now our American Express Card rakes in roughly 8% APY on groceries, dining out, and travel. Since we spend a lot of money on groceries and dining out, it seems wasteful to leave money on the table.
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