This might be a dumb question (I don’t know the intricate details of how it works) but is it feasible for Monzo to become an acquirer in their own right so they could process cards themselves in the longer-term future rather than paying a third-party (Stripe at the mo)?
I know it would be a huge amount of work for anyone but considering they already have a banking licence and modern infrastructure is it a big stretch? With a potential saving of £5,000,000 is it an option?
The only issue with this is it’s not helping to encourage people to go Full Monzo. It’s just assisting them to carry on using the service as a “pre paid card”.
It would be Monzo’s dream for all users to be #FullMonzo
As @cookywook said in his opening piece, it effectively comes down to a mindset (old users still doing it they way they always have).
Out of curiosity @cookywook, can you validate @alexs’s point about the above?
Have Monzo ruled out charging a fee for Debit Card top ups… and… is it even possible to charge for that, but not for bank transfers as per @anon61087081’s point?
My suggestion would be to stop remembering top-up card details, and instead ask users to enter their card details every time. Adds a bit of friction that might make it a teeny bit more faff than sending money via bank transfer 
Yeah totally agree, I’ve not used top-ups since I joined the CA preview and I’d recommend anyone to go #FullMonzo.
Since we’re throwing solutions out there though, is gaining acquirer status not going to remove the bulk of the cost without going for the bait-and-switch pitfall? Also opening a new channel of revenue later on?
Like I said though, I don’t have any idea in reality how much work it would entail
I know people should really be using bank transfers at this stage but it’s obvious not everyone can/will for various reasons (most of which I disagree with lol) but I’d hate to see Monzo’s rep go down the pan with any backlash to a turnaround… In an ideal world those customers would go #FullMonzo and there’d be no issue but it’s clearly taking some time for people to get on board…
My suggestion would be to increase the minimum amount you can top-up.
It’s currently £10, and that’s really convenient. I think immediately increasing the minimum to something like £50/£100 and then maybe even increasing it again in the future if the data says it works.
This will create a little friction and I imagine users are more likely to use bank transfers for fine grain control.
That’s not a bad idea - I guess in some ways it’s similar to @Rat_au_van’s idea of adding more friction into it.
The only downside would be if people ended up sticking with it, it would still cost Monzo (but it would cost them more each time) - Same amount in the end, but bigger chunks each time it happens.
Edit: By “downside”, I mean it’s no different to now - It’s not “worse”, and if it did mean people did it less, than it’s a small win for Monzo.
Maybe I’m misremembering something, but didn’t Monzo, when they made everyone upgrade to the current account, PROMISE that those upgrading customers would be able to use it in EXACTLY the same way as before?
Yes you are, that wouldn’t have made sense because a few other things have changed now that the current accounts have launched 
You might not have activated mobile banking.
I thought this might be the case so I was showing how your “ludicrous” suggestion didn’t even make logical sense.
Moron they might be, but maybe they care more about the ease than the cash.
No I’m not.
I checked my emails; here’s an excerpt from my invitation to upgrade;
If you’re thinking “I really like my card as it is”, don’t fear. You can upgrade and then continue to use your Monzo account in exactly the same way.
But, oh look, here’s that promise from December 2017.
And it addresses top–ups from the start. And there’s me in post #3 saying what I still believe today. And there’s you @Anarchist in post #4 explaining what upgrading means.
And there’s @Naji in post #5 stating in black and white:
(Emphasis mine)
I would say you remembered correctly.
That’s a little bit more specific I think Tom’s addressed that comment with his point about ‘bait & switch’.
Although, directly under the part of @Naji’s quote you chose, he says:
No problem, not 100% sure myself. All I know is, companies are not allowed to charge for card transactions including Apple Pay/google pay
Yes. Bad selective quoting (unintentional).
Like I said, I think top–ups are foolish, but Monzo did make a great deal out of the “use your new current account in exactly the same way” line.
Maybe Monzo selectively quoted the ‘exactly’ promise and omitted “but only until we change it in less than a year” 
That’s a good point, Monzo are set up as a merchant in order to accept these payments (no source 
) so I expect that rule applies to them too.
I don’t think you can win either way if you charge or don’t for top ups. I think it’s been good turned off for new members.
I agree that I don’t think Monzo can win here – there’s always going to be someone unhappy.
If I’m honest, I completely see that Monzo promised using the account in exactly the same way, but I also think it’s unrealistic to think a product or service would never change – at what point is it acceptable for Monzo to change policy on this? Or do they have to stomach the cost forever?
While I sympathise with that view, people need to remember the issue is being raised RE Monzo’s sustainability, and so that ultimately we can all continue to enjoy their (superior) service for free. I don’t think they’ve set out maliciously to catch people who upgraded from pre-paid to current account, and then gradually remove features that customers previously enjoyed – they’re doing it because it costs them a fortune and they can’t swallow it forever. When competitors get to Monzo’s size I wouldn’t be surprised if you also saw them scaling back such costs.
The other point to make, that I don’t think has been made before, is that if they could save that money being spent by a smaller proportion of users, and spend it elsewhere for all users (like myself who gets my salary paid in – hence no top-ups) – maybe that’s gradually increasing Foreign exchange ATM withdrawal allowances, or charging cheaper interest on overdrafts (Tom mentioned recently that the FCA might have issue with the current 50p/day, and it’s been well discussed that on an APR basis Monzo aren’t as competitive with people like Starling). I know Monzo don’t want to segregate users (premium accounts etc.) – but they’re already doing it a little bit here…
As I say, I think ultimately someone will always be unhappy, but in this case I think there seems to be a small proportion of those 150k users who actually need to use top-ups (people in foreign countries for example who can’t do faster payments on weekends).
Either add a 0.5% fee to cover it, or if it’s not possible to charge for the top-up – remove the feature all together. Those users affected will quickly adapt. For reference, I use Nationwide and First Direct – both have finger print recognition for quick access, and after setting up Monzo as a payee the first time around, it literally takes ten seconds or less to wire money into my Monzo account instantly (all faster payements). Suspect most people affected will be like me – based in UK with another account that works on faster payment network - therefore – not the end of the world.
I’m wondering how the legislation is phrased. If it’s about exchanging money for product/services then there might be an argument that Monzo is exempt as the card transaction isn’t for a purchase per se (and didn’t someone say that Transferwise charge?)
Might dig it out and have a look later #geek