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

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.

Generate revenue how? Monzo don’t sell things you need credit for? Or am I missing something?

There was a trial a couple of years ago of “spread the cost with Monzo”. So this is something that has been looked in to before.


So a Monzo Credit Card, Basically


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 it’s a lot of risk for very little reward. Loans are the way forward for large purchases.

Save up and buy it when you can afford it.


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

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

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Obviously there is some risk with any form of lending, but I don’t see how it is a lot of risk for little reward?

Yes, it’s that simple. :roll_eyes:


Because on a lower amount the interest that is applied is tiny :thinking: I couldn’t be bothered with all the hassle of lending £100 and chasing payments and legal proceedings should someone stop for such a small amount I’d make in interest. Unless you start applying Wonga style rates.

This is why banks generally don’t loan less than £1,000.

That’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.


A Monzo credit card would be very nice.

But we also have PayPal Credit, so don’t forget about that

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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 it’ll be something that wont return until things improve a bit

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PayPal credit is err interesting.

I’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.

Biggest problem I had with Spread the Cost was that you couldn’t apply for it in advance. You had to make your purchase and then apply after the fact.

While I can’t speak for everyone, what this meant for me was:

  • I had to ask myself, can I actually afford this if Monzo don’t ‘Spread the Cost’?
  • If no, no purchase; too risky.
  • If yes, make the purchase; but given I can actually afford it, there’s nothing to gain from spreading the cost after all.

There really needed to be a flow where you could say “I want to make purchase X, will you cover it?” and if the answer is ‘yes’, you should then be given a window in which to make the purchase and connect it to the offer.


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

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.

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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!

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I pay it via DD no issues