Monzo Credit Card - how would it work?

Over on the Community’s Summer Wish-List, a Monzo Credit Card is storming out ahead. And at Investival, I think Tom mentioned they are thinking about the idea internally (but was clear to say that he wasn’t making any announcement!)

So, while we’ve discussed the idea before, I wanted to ask folk how they thought a Monzo Credit Card should work? While credit features (APR etc) are vital, I’m really interested in how you think this might work in the app. How might budgeting work? Integration with the current account? What might make it better just by being part of the Monzo experience?!

I’m going to have a think and come back with something longer later, but my starter for 10 is:

  • Instant notifications (obvs)
  • Option to allow you to squirrel the amount you spend on your card from your current account to a pot, so you’ve got the money ready to pay off at the end of the month
  • Budgeting features (but I’ll need to think about how this will work with the son of Summary!)

What does everyone think? What’s the draw for a Monzo Credit Card? How would this work in app?

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I suppose the current “stretched your budget” feature within the current account could be replaced by a CC. It is a tough one because itll all come down to what people use a CC for. I only use mine for work expenses to give my employer time to reimburse me so I’m never out of pocket.

I also like s75 protection for holidays etc.

My own thoughts would be to keep it simple. Decent APR and no gimmicks. What I really like about Monzo is their ambition to make banking accessible to all and financial awareness. Really you don’t want to use a CC as a long term option. So I’d like to see something integrated with the main account to get the CC Debt reduced quickly.

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0.5% cashback that drops into a savings pot and I’m all yours Monzo.

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A £100 fee and a metal card :smirk:

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Firstly, some background. I currently have a credit card which I use for larger transactions (typically over £30). It’s a Tesco CC and it earns Clubcard points.
The credit card balance is cleared each month. Although I could just use Monzo, having a credit card does provide some benefits (e.g paying larger amounts such as deposit for holidays etc) but it would be great to have a Monzo CC.

I’d like credit card to appear along with accounts and pots and for the feed to work in the same way. It would be great to have transactions auto-assign to categories and be able to set budgets in the same way we can with the CA.

A more holistic view where both current and credit card transactions appear in the same feed and are budgeted together would be perfect.

Cashback (1%?) would be excellent.

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Quick question: the feed working the same way, do you mean credit card transactions as part of a master feed (with your current account) or in the same way as the current account but separately for the credit card?

With interchange fees capped at 2% I doubt we’ll ever see 1% cashback on fee-free UK credit cards

Unless post-Brexit we decide to throw all the EU silliness out the window and become a mini-US

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Current needs to match my current cards would be:

  • Purchase Protection
  • Either 2-10% cashback or 1-3 points/miles
  • No foreign transaction frees
  • Airline Lounge access
  • Instant Notifications
  • Car rental insurance waver
  • Trip insurance
  • Warranty extension
  • Card Freezing
  • Apple Pay / Samsung Pay / Contactless
  • Concierge Service
  • Annual Travel Credit
  • Baggage Delay Insurance
  • Roadside Assistance
  • Lost or Delayed Luggage insurance
  • Emergency Evacuation Cover
  • Emergency Dental Cover
  • Hotel Upgrades
  • Free Credit Reports
  • Identity theft Monitoring
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Wow, that’s a lot! Are you willing to share how much the fee is for all that?

I don’t think there’ll be any rush to release a US Credit Card.

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Two of my cards are free and the other is $100 although there is a free option with slightly less benefits.

It more that pays for itself.

Monzo should launch a really good CC in the UK though something lacking.

Interchange fees are capped in the EU and not in the US. That is generally why they can’t be on par with the US.

Ah sorry, didn’t realise you were in the US! (Your profile has you down as a UK account holder!)

I am aware but there are payment processors in the US that charge less than 2.75% possibly less. Maybe their payment mix results in average interchange fees which are lower.

In the US debit card transactions were capped.

I am a UK account holder! I just use my US cards :slight_smile:

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I assume this is a US card? Which card is this?

That’s a lot of benefits - we couldn’t

In the UK it is 0.3% for credit cards. That significantly reduces what credit card companies can collect from the 2.75% that you state. A lot of benefits have been slashed in the last couple of years and American Express are expected to follow suit soon I believe with cutting benefits.

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To be fair, it lowers costs in the long run as fees are passed to the consumer.

The nice thing about the benefits is it spreads costs over time.

As a minimum I think they should provide separate feeds, tracking, and budgeting for the current account and credit card. Ideally they would also have composite views/options for these things, but if composite were the only option things could get confusing.

At the moment there isn’t a compelling credit card on the market with the full set of features I get from Monzo that I really like (in particular instant balance updates, transaction enrichment, spending analytics and transaction search). I don’t see Tandem as compelling as the app does not seem to be as good as Monzo or Starling.

Furthermore, whilst Starling are rumored to be introducing a credit card and Jaja looks good, for simplicity I’d rather have a Monzo credit card (current account and credit card in same place).

The feature I would particularly like (if it can be called a feature) is for the card to be be on VISA rather than Mastercard (or for Monzo to switch the debit card to VISA and put the credit card on Mastercard).

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To be honest, I’d love all my transactions (credit card and current account) in the same feed but can see that some wouldn’t like this.

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