Then they will have no issue paying it off at the end of the period.
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They should be paying that £3 sandwich in full that same month tbh. A savvy person has already factored in their lunches to their budget.
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IMO someone in control of their cashflow would prefer the psychological hygiene of grouping all purchases above £100 into credit spending (because Section 75), and anything below £100 to be paid off immediately with their cash. Flex was intended to be a credit product and is being treated that way.
Monzo must have had enough data to conclude that pushing users to use their own cash or overdrafts for anything below £100 is better for their books and save them from being scrutinised by regulators for irresponsible lending. I sympathise with the low earning Mum who wanted to stretch a £80 birthday party, but people gotta get used to the fact that just because consumerism has brainwashed you to think certain purchases are necessities (b-day parties, TVs, the weekly takeaways, etc.) doesn’t mean they aren’t in fact luxuries.
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Can we stop making assumptions about how people do/should spend on a credit card and get back to discussing Flex
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Yessir 
So those leaving for another product, where will you go to buy your sandwiches and milk?
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I will just point out that people were saying this about their old paid plans and that didn’t work out. Monzo do not give me confidence that they know what to do with their own data.
That’s not any opinion on this change, but I do think stepping back will show Monzo don’t always make great decisions and we’re suppose to believe they know what their data shows.
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What didn’t work out? Moving people from Plus/Premium to the new? How do we know it didn’t work?
The data will show that 0% on small purchases costs them money and x% of people that Flex over £100 then don’t pay in 3, but start paying interest.
This time it isn’t guesswork/predictions, it’s real world numbers.
The plans themselves. The modular nature of it. Every change they do people say “well they must have data that shows this is the right way to do it” which I just don’t have such blind faith in with most companies, but particularly Monzo.
I’m against this change, but mostly just because I think there’s far too much judgement on how people are managing their own finances, but I don’t think Monzo make sound decisions always based on what we assume they have data on.
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Yes, I needed to stop the plan before hand, I was under the impression I could change it later after the purchase, so that would only work in a certain circumstance for me, I’d have to plan ahead, which often I don’t
You can create a plan in a matter of seconds. Even in Apple Pay before tapping.
It’s better to create a plan for more than you intend to spend, as a buffer, but you’ll only ever be charged for what you actually spend divided by 3.
The first charge being the first instalment.
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Indeed a savvy person has - and that savvy person uses credit for cashflow to maximise the interest return on their money in an interest-bearing account until the time it needs to be paid off. Compounding is your friend.
Flex is a tool to be used to your benefit. I don’t see why it is considered pyschologically hygienic to pay everything off immediately with cash if you have a tool available to you, which allows you to earn interest on your money until payment deadline.
It is a false assumption that everyone who uses flex for purchases under £100 is doing so irresponsibly and also that purchases are always being made with money the cardholder doesn’t have.
I never buy anything on ‘credit’ I don’t already have the money for - the credit facility allows me to maximise my returns on money I already own.
I’ll give it a go, it only works if you have internet access which is a bit of a bad, like if you’re somewhere with no signal, you’re kinda stuck
I mean, I can see why it may not be allowed, but come on!!! CONTEXT
What’s next? Banning the word “downer” in case it’s offensive to people with Down’s syndrome
That would be downy.
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First iterations of what is now Amazon Marketplace (Amazon Auctions and Zshops) were massive failures.
Marketplace now accounts for something like 60% of their sales.
Sometimes having the willingness to try things and learn from the mistakes is what creates the progress, regardless of how much data is available.
This is totally valid, but it’s such a tiny tiny amount that no amount of compounding is every worth the complaining/effort.
If you Flex £99, you get £99 in savings for 30 days, then £66 for 30 days and then £33 for 30 days.
At (a generous) 4% you might be getting elsewhere.
You’re gaining an impressive 66p. Now with the changes you only get 33p as you need to pay it off sooner.
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Ahh yes I get what you mean. Those situations are likely to be few and far between though, for me anyway, as even in remote locations etc I just connect to the hotel WiFi, but you can always plan ahead.
I only pay later on large purchases just as I would a credit card as I get cashback for everything else
I think Klarna is planning a pay later option after you’ve carried out the transaction.
They also seem to be including cashback for pay later transactions too not just those that you pay in full.
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I agree.
I don’t think Monzo are Amazon though.
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