There has been a lot of chat about how the offers generally suck and are rarely refreshed. They offer very little value as a quick Google will usually present a better offer. Monzo have been lazy in two respects here a) not updating the offers regularly and b) not striking deals with the retailers in order to make affiliate commission.
Anyhow, what if instead of offers, they offered cash back at certain retailers? Lets have a look at Revolut are offering right now:
In the interests of fairness I will point out that some of these are ‘up to’ percentages and some have minimum spends, or are limited to certain product categories (for example the Amazon cash back is just for Amazon devices).
No codes to mess about with, just pay with your Revolut card. Revolut take care of everything else. I think overall, this is a much better proposition for the customers than what Monzo has. Wide variety of main stream retailers, new offers frequently and auto cash back with no coupons.
So, how is it better for Monzo? Well simply, they need to monetise it unlike at the present time. At least once every two weeks it seems I get an email from ASOS with a 20% discount coupon to use between 7pm and 9pm. All Monzo need to do is negotiate with retailers:
Hello ASOS, we are a back with five million customers, two million of which only spend with you once every six months. Reimburse us 15% of all spend with our BINs between 5pm and 10pm on the last Friday of the month and we will send a push notification offering all our customers 10% cash back.
Monzo keep the 5%. Repeat x 20 retailers. The rest of time time, Monzo could offer 1% cash back from their own pocket (by dipping into the 5% they collected). Add a maximum cash back allowed per month too.
Is it oversimplified? Yes, but you get the idea. Monzo know the brands we shop at, they know the average transaction value and how often on average we spend there. It is time to monetise that data whilst also offering customers value and encouraging signups to Plus and Premium.