Monzo has begun letting its card customers access Apple’s monthly installment payments offering.
The U.K. digital lender announced Tuesday (Sept. 17) that it is launching a credit card feature that lets customers choose monthly payments before completing their purchase online with Apple Pay when using the bank’s credit card product Monzo Flex.
“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,” Monzo General Manager Kunal Malani said in a news release.
“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.”
According to the release, Monzo Flex customers with access to Apple’s iOS 18 operating system for the iPhone and iPad now have the option to pay for purchases in full, or spread the cost over multiple months.
“This allows customers to see the monthly payments, understand total cost including any interest and choose how they’d like to repay before completing their purchase,” the release added. “This adds to the unique purchase-level control that Monzo Flex customers have over their credit card spending.”
Monzo’s new offering comes as the surge in buy now, pay later (BNPL) services “presents both a threat and an opportunity for banks striving to regain a foothold in a market shifting toward digital convenience,” as PYMNTS wrote last month.
The PYMNTS Intelligence/Galileo collaboration, “Build Now, Not Later: How Banks Can Seize the BNPL Opportunity,” examines critical insights about the BNPL trend and its implications for traditional financial institutions.
“Although FinTech companies initially pioneered the BNPL space, traditional banks are rapidly catching up,” PYMNTS wrote. “Banks possess inherent advantages that could position them favorably in the BNPL market.”
A major factor is consumer trust, as surveys suggest that a notable portion of Generation Z consumers and other demographic groups have more confidence in banks compared to FinTechs, especially when it comes to fraud prevention and financial security.
Meanwhile, a separate PYMNTS Intelligence report, “Redefining Retail: Consumer Finance Trends Driving the Evolution of Pay Later Plans,” found that a third of consumers had used BNPL in the last year, a figure that climbs to a respective 39% and 43% for people living paycheck to paycheck without issues paying bills, and those living paycheck to paycheck and who have trouble paying bills.
