Help us test setting a default plan for Flex 👀

[TomMills]

Hey everyone

You might’ve already noticed that we’ve been adding features to Flex so you can use it as a credit card, as well as a Buy Now Pay Later product. Features like being able to pay in full on your next payment date and get a physical card.

We’ve heard feedback that some of you don’t want to pick a plan each time you flex something. To quote a couple of community contributors:

“If this could default to “pay in full next month” with the option to edit the payment plan - even better.”

“It would be great (as mentioned earlier in the thread) to be able to select a default plan.”

Set a default for Flex card purchases

We’re trialling another new feature to help you use Flex as a credit card – setting a default for Flex card purchases. It gives you the same experience as setting up an automatic payment on your credit card and reduces the friction of having to pick a plan each time you buy something.

You can choose to pay in full on your next monthly payment interest free or pay the minimum monthly payment, just like with a credit card. You can also still select the option to choose each time.

The card default won’t affect purchases you move from your current account. We’ll still ask you to pick a plan when you flex those.

You can’t default to pay in 3 or 6 monthly payments

We’ve seen lots of people using Flex as a credit card for everyday purchases which they then pay in full, while using instalments to pay for occasional bigger purchases.

So we’ve built the first version of defaults based on the experience that credit card users are used to, which is paying in full interest free or paying the minimum monthly payment.



You can still edit plans before the first payment date

Being able to choose how you repay each purchase is a core feature of Flex, and you’ll still be able to do it when you default to paying in full or paying the minimum monthly payment. We’ll continue to send you reminders when your monthly payment is coming up, so you’ve got time to review and change your plans before the first payment date.

Editing plans works the same as before:

• You can move to an interest-free plan (Pay in Full or Pay in 3) any time before your first payment. After that, if you’re on an interest bearing plan you can still edit it so it’s shorter, but we’ll charge interest at your personalised rate.
• You can move to an interest-bearing plan at any time if you want more time to pay off a purchase.

We’d love to hear your feedback

As always, we’re going to test Flex card defaults with a small group of customers first. It’s something that’s been high on your wishlist, so we want to hear what you think.

If you’d like early access to give it a go fill out this form by 5pm Tuesday 9th May and we’ll get the feature to you next week.

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If eligible, Monzo Flex is interest free every time you pay in full on your next monthly payment date or over 3 instalments. You can also pay over 6 or 12 instalments at 24% APR representative (variable). You have to be 18+ years olds to apply. Ts&Cs apply.

Carefully consider the cost of credit before a purchase. Missed payments negatively impact credit scores and you may lose the interest-free rate on existing plans.

Representative example: 24% APR representative (variable). £1200 credit limit. 24% yearly interest (variable).

[Revels]

Great that this is here, but disappointing that I can’t set the default to 3 months.

For me, that’s the best thing about Flex. I get 3 months interest free, which is why I will use Flex rather than my other credit cards.

It’s not a huge deal for the amount of times I use Flex, to take 15 seconds and select 3 months, but it’s a shame this feature add doesn’t cover it.

[desert-viking232 (Alireza)]

Sounds awesome! Loving monzo flex!

[Carlo1460]

I got left out too

[BritishLibrary]

Submitted!

@Revels

Great that this is here, but disappointing that I can’t set the default to 3 months.

For me, that’s the best thing about Flex. I get 3 months interest free, which is why I will use Flex rather than my other credit cards.

But echo this.

[projectfortytwo (Chris)]

Submitted. Amd I’m fine with a default to pay in full, it’s what I’ll use 99%(ish) of the time - but agree that it would be great to be able to select 3 months interest free as a default. Though I get why the option isn’t there.

[StuartL (Stuart)]

Submitted

@TomMills

You can’t default to pay in 3 or 6 monthly payments

We’ve seen lots of people using Flex as a credit card for everyday purchases which they then pay in full, while using instalments to pay for occasional bigger purchases.

Why not both?

Appreciate that it’s a first version of something that could potentially change, I just hope priorities don’t change before then.

All that said, thanks for the great update. I’m loving the pace that monzo is working at of late

[Peter_G]

@StuartL

I’m loving the pace that monzo is working at of late

Amen!

(I was just getting itchy as we haven’t had a release/news in a few days )

[TomMills]

Happy Birthday!

[thehamshackman (dstaruser)]

@TomMills

Form submitted.

A huge thankyou to you and the rest of your team for this (and all of the other stuff you do behind the scenes, which we will likely never see).

It is much appreciated

Best Wishes,
David

[aCCount]

Does this behave exactly like any other credit card then?

What about the transaction types (pay at pump?) that were being blocked?

[BristolMatt (Matt C)]

I think my dream scenario would be:

If amount >= £XXX - pay in 3 instalments
Otherwise, pay off in full next month

[Peter_G]

@N26throwaway

A paired instant access saver pot from which flex payments can be taken from. Flex defaulting the longest interest free instalment option and automatically sorting money into my flex instant access saver to cover the repayments.

The long mooted credit card pot, coupled with some interest, would be amazing.

(Interestingly, the US is testing a credit card pot. No interest though).

[TheoGibson]

@N26throwaway

Let us stooze. It benefits you more if we do it with Monzo, since your rates are a fair bit below the base rate. You actually get more money out of us from stoozing than you would if we paid in full (and we get a better deal too, so everyone wins).

Unfortunately - It doesn’t benefit us

When we lend customers money - this is money that’s no longer sitting in the Bank of England. So for example if you have a £100 Flex balance which is all interest free. Right now that costs us £100 * 4.25% = £4.25 per year.

So if you imagine the following scenario: You have a £100 interest free Flex balance and therefore an extra £100 sat in a 3.2% savings account. Monzo’s P&L would look like:
+ £100 * 4.25% from the BoE interest we earn on the £100 in your savings account
- £100 * 4.25% from the BoE interest we lose from the £100 of Flex borrowing
- £100 * 3.2% from the interest you’re earning from the £100 in your savings account

So overall it’s -£3.2 per year per £100.

[Chris_R (Chris Rimell)]

@BristolMatt

my dream scenario would be:

If amount >= £XXX - pay in 3 instalments
Otherwise, pay off in full next month

Absolutely. That’s my thought too

[Revels]

@TheoGibson

Unfortunately - It doesn’t benefit us

When we lend customers money - this is money that’s no longer sitting in the Bank of England. So for example if you have a £100 Flex balance which is all interest free. Right now that costs us £100 * 4.25% = £4.25 per year.

So you don’t want to default to 3 months because it costs, you offer it but hope I pay it off at the next payment date? Or want me to move to one where interest kicks in?

Instead you’ve opted for all of it (costs Monzo less) or 12 months (earns Monzo more)

#SadTrombone

[RichardL (Rich)]

FYI @AlanDoe when these get pinned to the top they disappear from the category view homepage, at least on mobile, maybe desktop too? Some may use other views which probably won’t be impacted.

You might end up missing quite a bit of feedback because of this and I’m sure the discussion here will be enough to keep the topic at the top all day anyway.

[AlanDoe (Alan)]

Thanks for the heads up

Currently looking at pin facilities

[RichardL (Rich)]

@ndrw

Tap the pin so it faces the other way around and et voilà it stays pinned on the forum home.

Okay so this is wild!

Sorry to derail the conversation a little though, just thought it was important because you’re looking for feedback, but some of your audience won’t see the post.

FWIW my feedback is the same as others here. It’s great to see this, but I’d like to default to max out the interest free period.