Monzo has introduced a new payment option for its Flex
customers using iOS 18 and iPadOS 18. The feature allows users to pay in full
or spread the cost over several months at the point of purchase through Apple
Pay. This option is available when shopping online or making in-app purchases
on iPhones and iPads.

Launcheing Monthly Payment Option

Customers will be able to view the monthly payments,
understand the total cost, including any interest, and select their preferred
repayment method before finalizing their purchase. Monzo is the first UK bank
to integrate this feature with Apple Pay following the release of iOS 18.

“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, Kunal Malani, General Manager at Monzo, commented.

“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.”

First out of the blocks to support BNPL in the apple wallet is Monzo. Will be fascinating to see how long it takes HSBC to follow/how the UX compares on this. A good marker if banks are capable of being fast followers..will they get it out before 2025?? https://t.co/e7fvOmap5V pic.twitter.com/5ZZPUH2NIf

— Optima Consultancy (@OptimaUK) September 17, 2024

Meanwhile, Monzo
has secured €397 million in a funding round led by CapitalG, Google’s
independent growth fund, as reported by Finance Magnates. The UK’s largest
digital bank, valued at $5 billion, also received investment from Google
Ventures, HongShan Capital, and existing investors Passion Capital and Tencent.

Apple Shifts to BNPL Partners

In the United States, Apple has announced similar
developments. Users can redeem rewards using Discover credit cards and apply
for loans through the Buy Now, Pay Later (BNPL) firm Affirm. These changes come
shortly after Apple discontinued its own BNPL service to collaborate with
third-party providers.

Other banks preparing to roll out similar services include
ANZ in Australia, HSBC in the UK, CaixaBank in Spain, and Citi Synchrony, along
with issuers partnered with Fiserv in the US.

This article was written by Tareq Sikder at www.financemagnates.com.