Buy Now, Pay Later (Klarna, Tym-it, Clearpay)

Feedback & Ideas
1

Buy now, pay later in installments like Tym-it.

I think this would be a great feature that could benefit users and generate extra revenue to Monzo.

3

Generate revenue how? Monzo donā€™t sell things you need credit for? Or am I missing something?

4

There was a trial a couple of years ago of ā€œspread the cost with Monzoā€. So this is something that has been looked in to before.

2 Likes
5

So a Monzo Credit Card, Basically

3 Likes
6

Have you got an example of how this would work and how Monzo would make money from it?

I understand if they use their own money to fund this, they might make some money. But itā€™s a lot of risk for very little reward. Loans are the way forward for large purchases.

7

Save up and buy it when you can afford it.

4 Likes
8

I canā€™t see them doing this in all honesty, even if they did not sure it would gain traction as thereā€™s already a number of big players in the market that dominate it and I canā€™t see another one being able to muscle in.

9

Monzo used to do this and charged money for the service.

1 Like
10

Obviously there is some risk with any form of lending, but I donā€™t see how it is a lot of risk for little reward?

11

Yes, itā€™s that simple. :roll_eyes:

4 Likes
12

Because on a lower amount the interest that is applied is tiny :thinking: I couldnā€™t be bothered with all the hassle of lending Ā£100 and chasing payments and legal proceedings should someone stop for such a small amount Iā€™d make in interest. Unless you start applying Wonga style rates.

This is why banks generally donā€™t loan less than Ā£1,000.

13

Thatā€™s fair - I suppose I was looking at it from the Klarna perspective where they earn the payment processing fees from the merchant, rather than interest.

2 Likes
14

A Monzo credit card would be very nice.

But we also have PayPal Credit, so donā€™t forget about that

1 Like
15

The spread the cost thing I thought was a good idea and was just a different packaging of monzo loans.
It needed some tweaks as it could come across to some as pushing those loans sometimes (perhaps a toggle needed? :laughing: ) but all in all a good service to provide

Its a different climate at the minute however so I think itā€™ll be something that wont return until things improve a bit

1 Like
16

PayPal credit is err interesting.

Iā€™ve tried so many times to get them to take repayments via direct debit and they never do. Always have to pay manually by card.

17

Biggest problem I had with Spread the Cost was that you couldnā€™t apply for it in advance. You had to make your purchase and then apply after the fact.

While I canā€™t speak for everyone, what this meant for me was:

  • I had to ask myself, can I actually afford this if Monzo donā€™t ā€˜Spread the Costā€™?
  • If no, no purchase; too risky.
  • If yes, make the purchase; but given I can actually afford it, thereā€™s nothing to gain from spreading the cost after all.

There really needed to be a flow where you could say ā€œI want to make purchase X, will you cover it?ā€ and if the answer is ā€˜yesā€™, you should then be given a window in which to make the purchase and connect it to the offer.

4 Likes
18

I pay mine DD every month, never had a problem getting that set up

19

Better yet, take advantage of these offers and leave your money in interest generating accounts until it needs to be paid. Profit.

Sometimes these offers can actually be cheaper than buying outright too, like in the case of Xbox all access from Klarna.

1 Like
20

I am using Klarna for my XSX from all access, very slick app and means I can pay off the Xbox gradually with Game pass ultimate and earn some 1p interest on my savings!

1 Like
21

I pay it via DD no issues