Monzo to ‘enter the BNPL market’

Monzo is set to enter the Buy Now, Pay Later (BNPL) market, according to sources reported by the Evening Standard.

The official announcement could potentially come within the next week according to the sources.

The news comes after rival challenger bank Revolut announced last week it was set to offer BNPL services to its 16 million customers.

Monzo’s BNPL service will reportedly include affordability checks for consumers according to the sources, that will see the bank share consumers' details with credit agencies.

Monzo and Revolut are not the only financial services firms to recently make an entrance to the BNPL market; last week payments giant PayPal announced its plans to acquire Japanese BNPL venture Paidy in a $2.7 billion deal.

BNPL is particularly popular with Gen Z and Millennial shoppers; 57 per cent said it was a “smarter way to shop” and 37 per cent said it gave them “more control of their finances” according to research commissioned by PayPal.

However the BNPL industry has also recently come under scrutiny, with recent research from Citizens Advice revealing that one in eight – or 12 per cent – of consumers between 18 and 34 have been chased by debt collectors after using BNPL services.

Monzo was valued at £1.25 billion in its most recent Series G funding round in February 2021, a fall from its peak valuation of £2 billion.

In March, Monzo had 5 million customers according to data collected by Apptopia, accounting for over 38 per cent of monthly active users in the fast-growing digital banking app market.

In May 2020, Tom Blomfield stepped down as chief executive to move into the newly created role of president before leaving the company entirely in January 2021.

In February 2021, the Financial Conduct Authority (FCA) said it planned to regulate the BNPL market with new rules, which would force providers to carry out affordability checks.

    Share Story:

Recent Stories

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.