As many of you will know, Monzo recently shut its Las Vegas office, reduced headcount in the UK and have taken steps to make support harder to contact (i.e. more reliance on self-help and less support at night)
All these changes, bar the closure of the US office, were blamed on Covid 19 and the need to save costs as debit card use had reduced leading to a fall in interchange revenue earned by Monzo.
As such, I was interested to see the BBC report that debit card spending only fell slightly during April (the first full month) compared to a year ago:
With shops closed, the use of debit cards was down 5.1% in April compared with the same month a year ago.
Contactless payments saw a significant drop, as many people were working from home and making fewer occasional purchases, as well as commuting less.
However, with the limit on contactless payments having risen from £30 to £45 and some shops refusing cash, the average purchase using this technology rose above £10 for the first time.
This compared to an almost 50% fall in credit card spend.
Have to say, given Monzo’s actions I was expecting a lot more than a 5% reduction in debit card spend