They’ll lose money aswell as if half the customers leave, they’ll not be earning as much
- Shared rent - Do a bank transfer
- Shops without a card terminal - In 2020? Is that >£250 worth?
- Takeaways - Deliveroo and Ubereats is by card
- Tips - Jeez, with no income, why are you tipping >£250?
- Bills - Direct debits or debit card?
- Taxis - Most cabs have a card terminal now
- Cafes - Again, most have card terminals, although I’d question my spending if I had no income but spent >£250 at a cafe each month
5 Likes
That’s what I do.
It’s far more hassle walking across town to find a cash machine, withdraw more than I need, to then return to said shop.
I’d much rather go to a different shop that takes card payments and have the added security of being able to dispute the transaction should anything go wrong.
13 Likes
They don’t make much from having cash sat around in accounts, they make a lot of their money through interchange fees, which is people using card. (and lending, but they only lend out a VERY small proportion of what they hold from customers).
So actually, by people taking money out and using cash it’s costing Monzo that potential earning through interchange fees. So I don’t think it’ll have a huge impact on the earnings of Monzo tbf
2 Likes
So you earn £67 a week but spend >£1200 a month?
Monzo earn when you use your card. Taking out cash all the time costs them money. Hence why they are doing this.
1 Like
But you live in Greater Manchester? 
Yes I do
It is a real bank. All legal and everything
2 Likes
What makes you think I’m making up? I’ve got no reason too
If this goes ahead maybe a rename of the accounts is in order to cater the three different accounts - Monzo Basic, Monzo, Monzo Plus.
Still not sure Monzo have taken the best approach here. I’d not be happy to be charged fees to withdraw money in the UK - it affects the abusers of the system but , more importantly the vulnerable / low income customers too.
Could Monzo get in on launching cash machines in the UK and recoup fees when other bank customers use their machines? Good advertising with a coral coloured cash machine - will stand out in the crowd. Cash isn’t dead just yet.
3 Likes
I think you’re right, (ignoring the “if a real bank” part - I think you mean a non-challenger bank).
But I think that’s fine, they’re not aiming to become Digital First banks, like Monzo/Starling are. They have branches, and cash machines, they have a network of distribution where they can get cash out a lower cost (or potentially even at a negative cost due to charging other banks to use their ATMs).
Greater Manchester. Btw Greater Manchester isn’t in Manchester incase you didn’t know
Small cafes and bakery’s don’t take card near me as I stated. Theirs no need for them too for 0.50p-£4 items
Then, as @urban suggests, Monzo is not the bank for you.
Businesses cannot be all things to all people. Businesses that try often end up failing because they lack the focus of excelling in a specific area.
Monzo is a digital-first bank. Clues to this include:
- Having no branches
- Having no ATMs
- Prioritising the role out of digital payment methods such as Apple Pay
Cash is not a digital medium, and so I’m not sure why anybody should be surprised that Monzo may view cash differently to other banking providers.
But even having said all this, the fees they are implementing are not aimed at their actual banking customers. It’s an eminently fair and sensible approach.
6 Likes
they are just doing what any business would do. weed out free riders.
If anyone worries about paying for a bank account, just use it as an actual bank account and not a holiday money holder.
1 Like
I actually assumed there was a charge for all replacement cards. Why shouldn’t there be? If you lose your iPhone, does someone replace it for free?
As far as charging for cash withdrawals is concerned (above £250 per month!), I am happy with anything that draws greater attention to the costs to society of cash usage. Why should moving bits of paper around the country be free?
It is common in many other European countries for cash withdrawals to attract a charge or be limited in some way - just look at N26’s account for German residents for example. Why should we obfuscate the real costs of cash here in the UK?
3 Likes
Fully aware, I work in Greater Manchester. 
Anywho, back on topic…
I’m all for Monzo recouping costs, and if it leads people to reassess their reliance on cash, then that’s good. My only cash usage is getting a haircut, and everytime I go in, I have to leave to get cash out, because they haven’t got a card machine yet.
Starling don’t have these charges though…?
5 Likes
I prefer not to use cash since I want to keep track of my transactions and it makes me more conscious of my spending and what I should be cutting out when I reassess my budget every month. But maybe Monzo might not be the best bank that fits your spending habits.
Imo, as a consumer you have every right to vote with your feet and leave for a different bank if you feel Monzo doesn’t meet your needs or will charge for your regular spending habits.
It shouldn’t affect the vast majority of regular users, but for the minority who are affected and don’t want to be charged there are other banks out there that will let you practise a largely cash-only lifestyle.
Which part of greater manc are you in? I lived in greater manchester for a few years before moving into town, and almost every shop takes card. A few cafes don’t even take cash now, because it costs them time/effort/money to bank in.
7 Likes
I understand everything you wrote but I good move would have to include MORE benefits for people that decide to use monzo more and more or help you guys to reduce the costs.
setup more directs debits, use monzo cashless, spend more than X etc etc
if someone meets all the above let’s give her/him a free monzo plus or a monzo plus discount idw
1 Like
Starling have chosen a different business model to pursue to cover their costs in other areas, or they don’t have people abusing their system, or they are reviewing it and planning to bring in charges.
2 Likes