Monzo has announced the launch of Monzo Flex, its buy now, pay later offering.
In Brief:
It enables users to pay for items in three installments, interest free.
Users can also choose to pay over more installments but this will come with 19% APR.
The process is made seamless by having users apply once, then be able to select the option at the checkout.
What does this mean?
As buy now, pay later increases in popularity, the sector is still working to build trust and many have commented that having it available within a regulated banking platform could help with this.
However, it’s also interesting to note that instead of “Flex” denoting the flexibility often touted by Buy Now, Pay Later offerings, Monzo has stated: “Flex the things you want and need, like new headphones or on-point trainers...” which sounds a bit more like the new, modern definition of the word “to show off” - which might concern certain buy now, pay later critics who have already expressed worries that BNPL prompts users to buy things they cannot afford.
