You can now pay cash into your Monzo account!


(Andre Borie) #182

I believe electricity and other stored-value cards use a chip since they do crypto. Given that Monzo’s balance is online, they only need the card number which can be obtained from the magstripe (or typed in?) without having to install any additional software on the chip.


(Jonathon) #183

So the chip doesn’t have information that the PayPoint needs? Interesting.

Is it clear to the Monzo user that this needs to be done? Might be worth it for the short term until the retailers become accustomed to it.


(Andre Borie) #184

So the chip doesn’t have information that the PayPoint needs? Interesting.

Presumably the chip has the information but not in a format PayPoint expects. If the card number is indeed what’s needed then it can be obtained from the chip using standard EMV commands, which PayPoint could implement on their side (presumably they have remote software update functionality on their terminals).

Is it clear to the Monzo user that this needs to be done?

I think the app explicitly tells the card needs to be swiped. However I do not think it should be the user’s responsibility to know this. It should be the PayPoint operator’s. They have the machine, they should know how to use it.


(Is Santa here yet?) #185

My electric is swipe and tv license was before I switched to direct debit. Rent cards are also swipe


(Jonathon) #186

Well yes it shouldn’t be the user but at the end of the day for the short term it might just have to be. It’s easier for a customer to say “You need to swipe” until they do it instinctively.


(Steve) #187

You shouldn’t be expected to, but people running a shop advertising Paypoint…


(Jonathon) #188

Right. But the reality is what it is. For now, it might take the first few to tell them for it to get going. What should happen and what is going to have to happen can be different.


(Steve) #189

A Monzo splash page could do a lot more to help.


(Richard) #190

I think another option would be anyone that receives benefits into their Monzo bank account doesn’t have to pay the fee. I’m not saying that only people on benefits struggle but if Monzo want to be an account for everyone I feel they’re failing this group by charging for deposits.

It also has a benefit for Monzo in that it’s a way to incentivise some of these to switch to Monzo as their main account.


(Is Santa here yet?) #191

Are people on benefits more likely to deposit cash? It’s paid directly into your account. And what benefits would count? You can get child benefit with a very large salary


(Andre Borie) #192

I think another option would be to charge a fair price to everyone and let the customers (and the market as a whole) decide if they want to use the product.

Still don’t get why everyone is so butthurt about cash fees - are you guys dealing drugs to have so much cash to deposit that the fee would actually make a difference?

What’s wrong with just spending the occasional bit of cash? Depositing the cash is a convenience, it’s not mandatory (you can still spend the cash directly). If you can’t afford the convenience you can do without. Would you also advocate for people on benefits to be entitled to other convenience services like food delivery/etc? :joy:


(Richard) #193

I wouldn’t say child benefit. I’d say income support, tax credits etc - the same that water companies and energy suppliers help with.

I’m also not saying they pay in more cash i just think why would these people switch to Monzo if it’s going to perhaps cost them more.


(Andre Borie) #194

i just think why would these people switch to Monzo if it’s going to perhaps cost them more.

Is that an issue though? Monzo is aiming for profitability. Giving away freebies and making even more losses is counterproductive. Sure, those customers will be happy… until the entire company runs out of money after it’s given it all away in the form of various payment processing fees.


(Is Santa here yet?) #195

With universal credit it’s hard to see. People previously on income support or those who are on a reasonable wage and receive a low amount of child tax credit all now receive universal credit (in some areas). Would be difficult to sort that out


(Richard) #196

I’ve had friends that have gone through various issues that have resulted in them having to go on benefits and it is a massive struggle. Sometimes they need to pay in small amounts of cash to pay a bill. The £1 would be a struggle.

Other companies help people out that are on benefits and I see no reason why Monzo can’t help people in a time like that. Not everyone stays on benefits so it’s a way of creating loyalty for when they come off.

Monzo is either a bank for everyone or not. If they want to stick with that then they need to be it.


(Andre Borie) #197

Other companies help people out that are on benefits and I see no reason why Monzo can’t help people in a time like that.

Monzo is already doing quite a lot in terms of not hitting you with insane fees if you get a direct debit declined. These fees can quickly become a problem if you’re in a difficult time and get a few bills declined in a row.

Monzo however should still aim to remain profitable. If you want them to give away money for free then it’s no longer a business but a charity.


(Richard) #198

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#199

Didn’t they burn a good amount of cash last year. I recall their current plan is literally to onboard loads of customers because they’re per customer positive now on how much they earn from them?


(Jack) #200

Yeah towards the end of the pre paid scheme the costs were running high due to so many sign ups and the pre paid scheme not being as cheap to run.

This is their latest customer unit economics (for the average customer per year):


(Nathan) #201

Can only see this going up now also considering the cash deposits fees and high interest easy access loans.

Good news for Monzo i guess :tada: