So I’ve been reading through the Monzo Plus thread, popcorn in hand, and I suddenly thought- would anyone want to see paid tiers of Monzo with additional benefits come to the US, or are people happy with just one free service for everyone?
Three things brought this to mind:
The majority of existing prepaid card programs already charge monthly fees for essentially being a basic bank account. Clearly, some people are willing to pay these monthly fees just to have some kind of access to the banking system, so why not offer a paid tier that actually provides value for money?
Also, Revolut launched in the US with paid tiers, and apparently their Metal tier is getting enough people that the US version is now putting people on a waitlist (when I first re-opened my account with a US card I was given the option of Metal if I wanted to pay, now when I check the app it just asks me to “reserve” it). Granted, that could be demand for the metal card itself, not just the additional benefits. Still, it says something.
Additionally, I’ve got a couple of friends who don’t like using credit cards much and would like to stick to their debit cards were it not for some of the additional benefits (purchase protection, extended warranty, baggage, delay, cancellation insurance on air tickets, rental car/car hire protection) that credit cards provide, and I realized that for those kinds of people, a paid tier of Monzo priced similarly to a travel credit card (so $100 annually or a bit less) with those travel benefits (and possibly a basic level of cashback rewards like the 1% reward Discover provides on its debit cards), but on a debit card would be a relatively easy sell.
I’m curious to see if anyone else thinks this could work.