I get the £300 limit, especially for Paypoints, I don’t really want my local shop in the Village I live in having to deal with huge amounts of cash, and I wouldn’t expect them to have the same security that the post office has for cash handing. Those corner shops run on pretty tight margins already btw.
As for wanting to pay large amounts in, just get a Starling account for cash, and Monzo for your day to day banking. Nothing stopping you from doing it, and hardly a huge problem to shift the funds around.
Technically, they’re handing a pound over to PayPoint. Monzo isn’t making money off this. Which maybe gives you some insight beyond ‘group hypnosis’ – for some people, the convenience of PayPoint (locations, hours) is worth paying a small fee for. But plenty of others have said it’s not.
They’ve said previously the £1 is a top value for covering costs.
I think they’ll make a rather small profit perhaps annually from this but not enough to declare it as a means of money making stream for the company is how they left it.
It’s a fixed cost plus a percentage I believe, so it will vary depending on the amount deposited £1 is averaged across the expected distribution of deposits
From @anon41613057 original post it looks like in order to do it, Monzo need to replace every single card we are using because the current chip isn’t up to Post Office’s standard. That explains the awkward situation when their card machine refused my Monzo current account card despite me embarrassingly said “It IS a full bank card!”.
As to why Starling Bank get to have such a high cash deposit limit is still a mystery to me…
Re the £1 fee and people in poverty, and I am just thinking aloud here, Monzo have a pretty good idea of how an individual is using their bank account - could they set some sort of arbitrary limit of some %age below median income where fees are waived / lessened? Obviously some people would game the system, but it’s likely to be a fairly low percentage.
I realise it’s taxing higher earners to subsidise lower earners, but is that an issue?
Same feeling. I much prefer the post office for services like these. Its entirely likely that its purely a brand/reputation thing leading that thought, but it makes a difference.
That probably would be an issue yes.
I’ve mentioned before, id pay a monthly fee for Monzo to remove all the limitations and hidden fees from their current account instead. But i’m not going to pay more than someone else because someone tells monzo they don’t make money.
However, on your comment about people in poverty. My un-researched thought on this from past experience is that people who would frequently pay cash into a bank are far more likely to be people on low incomes or part time jobs. I know i got paid cash and paid that into my bank. If i had to pay £1 every time, well id just leave.
The chip issue only applies to if Monzo wanted to allow depositing cash at the PO. There is absolutely nothing that should stop your Monzo card from being used at a Post Office to pay for things. I use mine all the time.
So say they charged £15/£20 per month for daily cash deposits and overdrafts in total… Would you really be happy paying for that if, you are like me, haven’t deposited cash in a bank for over 10 years (I just spend it at the shops - over £120 in £5 notes not too long ago at a Tesco self-checkout: I was collecting the new fivers for around a year), haven’t needed the overdraft in 3 months+ and only need to take out around £30 of cash from ATMs every 3-4 months…
Some people like transaction fees, others want an overall monthly fee while others expect everything free bacause ‘uk banks do that’. There isn’t a correct answer here that will please the world so it looks like transaction fees is where we remain for the short term at least.
Oh yeah, transaction fees seem to be Moznos ideal direction and that’s fine if that’s the way they want to go. They aren’t obligated to do anything for anyone any particular way.
It just happens that things like fees for putting cash in likely hits poorer people more as they may be more likely to put cash in.
£1 is averaged across the expected distribution of deposits 
That explains the awkward situation when their card machine refused my Monzo current account card despite me embarrassingly said “It IS a full bank card!”.