You can now pay cash into your Monzo account!


(Jack) #202

Monzo don’t make a profit from Cash Deposits, they said the fee purely covers the operational cost.

The marketplace and integrations with other providers will hopefully be the real money maker though.


#203

Do they not make money the same way traditional banks do? Typically they loan out deposits which makes them money.

Didn’t they just undermine their marketplace idea with savings pots? That should have probably been a marketplace thing imo


(Jack) #204

They do in the sense of loaning the money out in the form of overdrafts yes, but not money from the fee charged to the end user to make the deposit.

Saving pots killed two pots with one stone:

  1. To provide people with interest on their savings, something people have been asking for.
  2. It gives Monzo the ability to start off with a base for the marketplace concept so to speak. It proves that a tight integration can work, they just need to get more providers onboard over time. I view it as a showcase as to what can be achieved.

(Dan) #205

That’s lending products. Deposits (specifically the £1 fee) are to cover costs - not a profit driver.

To me it’s the opposite. They deep linked their first savings partner in. Giving them leverage to get better deals with other providers - they can now approach other savings providers and say “£x is saved with our bank & x customers use savings pots” - do you wanna get in on our marketplace or be left out? When you go to create a savings pot, it says “more providers coming soon”.

They only have to walk a few providers through deep integration before opening up their API when they have good terms set.


#206

There’s less money to loan out if you charge people a pound to deposit their money - this is why banks usually have it as free, no?


(Dan) #207

I highly doubt Monzo have a lack of money to lend out and that they require more deposits before approving more overdrafts.

If they were that close to being illiquid the FCA would be on their back + the £85m just raised would have disappeared worryingly fast.


(MikeF) #208

No, these days things in banking are largely free because no-one wants to be the first to charge for something.

When cash machine charging came in way back when, it came in everywhere in a fairly short time (as I remember it). Once it was seen as acceptable to charge, the flood gates opened.


(Hugh Wells) #209

Hi @thomastte,

I’m really sorry about this :disappointed:

We are working with PayPoint to ensure all retailers are aware of this and how it works :+1:

If anyone does have any issues, if you could DM me the name and address of the store you had problems with, as well as a short description of what happened we can pass it on to PayPoint for you :raised_hands:


(Victoria James) #210

I’ve just done this, was so easy. Took less than a minute. The receipt told me when my money would be available and reminded me about the charge and I Instantly got a notification from Monzo telling me my cash would be available in 10 minutes.

I don’t mind the £1 charge as I would spend that in petrol and/or parking getting to my nearest bank whereas there’s a pay point 5 mins walk away.


#211

Given that financial inclusion is within your roadmap I think an integration with Post Office where financially excluded people can find themselves comfortable using banking service is necessary. As for now, replacing everyone’s card sounds like a costly resolution but in the long run, when intergration with PO happens Monzo won’t have to face a massive bill of replacing everyone’s card if the process is started now.

Plus, staffs at Post Office are definitely more used to unconventional transactions like writing a cheque or depositing a cheque whereas staffs at news agent would be much less familiar with them. From the feedbacks it does look like Pay Point isn’t much of an easy encounter.


#212

Definitely, post office deposits are so easy and painless. I did have to tell the woman behind the counter that Starling did it though, since a lot of them haven’t been updated on the matter, it obviously had been added to the system though, so them knowing the process for depositing cash is the important bit.


(Tony) #213

My local Sub Post Office is inside a McCols convienence store. Paid cash in using my teal Starling card without any problems. The one staff member who was manning both Post Office and newsagent counter didn’t ask any questions he just took my notes.


#214

Many people in lower paying jobs get paid in cash, often weekly. That would mean a fee every week to deposit cash into your bank so you can pay your bills etc.

Depositing cash is a convenience for you and many others who often don’t use cash, depositing cash is an absolute necessity for a lot of people as well.


((╯°□°)╯︵ ┻━┻) #215

Just because I’m curious… Which low paid jobs pay in cash?


(Andre Borie) #216

Drug dealer? Although I’m not sure it fits the “low paid” description. :joy:

Still can’t imagine the logistics of paying employees with cash being less costly than using bank transfers. I mean someone’s got to count all that cash and physically give it to employees, not to mention the risk of theft or counting errors.


#217

Jobs that result in a lot of cash tips.


((╯°□°)╯︵ ┻━┻) #218

I believe some trades people still do cash but was just curious if there were more. Once I know this it will be good to dig a little deeper to ask those questions :blush:


((╯°□°)╯︵ ┻━┻) #219

Like waiters for example?

If so, i doubt their tips add up to anywhere near their salary but could be wrong. I understand this isn’t the case for the US but I’m referring to the UK.

Just to be clear, I’m not arguing here. I’m intrigued :blush:


#220

This is actually a really interesting point


#221

Tom was specially asked about the charge last night on the Q&A , his response was spot on :+1:

Basically saying less and less people will move from being paid cash to bank accounts - only a matter of time