Previously, shoppers had to pay in full when they used their Monzo Flex credit card, and then choose to spread the cost of the purchase in their banking app
Monzo has introduced a new update for customers who use its Monzo Flex credit card.
Monzo Flex allows customers to split the cost of purchases over time. You can use it to split eligible purchases into three interest-free monthly installments, or over six or 12 months with interest.
Previously, shoppers had to pay in full when they used their Monzo Flex credit card, and then choose to spread the cost of the purchase in their banking app.
Monzo then updated this so that you could split payments when making online purchases in September 2024 – and now, the digital bank has expanded this feature so you can split payments when buying in store as well.
If you miss a Monzo Flex payment, you have seven days to pay it in the app – after this, it can impact your credit score and you can be moved to a longer payment plan, with interest.
In a statement published last year when Monzo Flex was first expanded, Monzo general manager Kunal Malani said: “Our customers love using their Flex credit card with Apple Pay and we’re thrilled to be the first bank to bring this feature to Apple Pay users in the UK.
“Now our customers are able to choose their monthly payments—right at checkout with Apple Pay when using their Monzo Flex credit card. This brings an even more convenient experience for our customers when shopping online.”
It comes as the Financial Conduct Authority (FCA) launched a consultation into buy now, pay later products, over fears some customers are taking on debt that they cannot afford.
Under new proposals, buy now, pay later providers will have to check that people can afford to repay their loans and offer support if they get into financial difficulty.
Borrowers will also be able to complain to the Financial Ombudsman Service if something goes wrong. The rules would come into effect when buy now, pay later comes under FCA remit next year in July 2026.
Firms will have six months from the date the regime comes into force to apply for full authorisation.
According to FCA research, one in five (20%) UK adults – roughly 10.9 million people – used buy now, pay later at least once in the 12 months to May 2024. This is up from 17% in 2022.
In May 2024, 2% of UK adults (1.1 million people) had £500 or more outstanding unregulated BNPL debt, and 11% of UK adults (5.3 million people) had £50 or more outstanding.
