Back in March, we shared an update about how we were experimenting with ways to reduce the cost of debit card top-ups. We were doing this because every time you use another debit card to top-up your Monzo account, it costs us money. Quite a bit, in fact - as the fees are calculated as a percentage of the top-up amount. So the more you top-up, the more expensive it is for us!
In our March update, we announced that we were putting a £100 limit on the amount you could top-up - for new users only. Old users who were used to topping up by debit card weren’t affected (though we’d still ask you to only use it in emergencies).
Since then, we’ve also been experimenting with turning the top-up feature off entirely for new users. And now we’ve made it permanent.
Topping up by debit card was the only way to add money to your account back when Monzo was just a prepaid card. Now that we’re a licensed bank offering current accounts, there are lots of other ways to add money to your Monzo account, whether that’s setting up a standing order, regularly making bank transfers, or getting your salary paid straight in!.
And with the recent features we’ve built that help you see your spending and budget better as part of the Big List, Monzo works best when you use it as your main account.
We’re confident that this change won’t negatively affect the user experience. Our experiments showed that new users don’t use Monzo less as a result, and can start getting the most out of Monzo right away.
For some more context, we also published our Q3 goals this week. And if you read those, you’ll know that we’re focussing on increasing revenue and decreasing costs. Top-up fees are one of our biggest costs at the moment. And turning off top-ups for new users will really help move the needle here and move us towards our goal to build a sustainable business.
And again: this is only a change for new Monzo users. Old users can still top-up by debit card. And all users can add money to their Monzo account by bank transfer, or going #FullMonzo by having their salaries paid in.
We don’t currently have plans to remove debit card top-ups for old users either.