After a week of near-constant outages for prepaid card users, Monzo affirms its third-party marketplace will become fundamental to its business model. To break it down, the cost of the pre-paid card is £50 per customer, per year. On the current account, that decreases to £15 per customer per year. As Monzo’s costs come down, Hewinson sees the marketplace as a way to “plug a relatively small gap from a revenue perspective”.
At last night’s Open Office session inside Monzo HQ, head of partnerships Phil Hewinson laid out his vision for the digital bank’s third-party marketplace, all housed in-app. It is expected that Monzo will branch out into offering multiple product categories, with energy and insurance first on the agenda. Others mentioned for the near future included investment, mortgage switching and cashback schemes. Long term, Hewinson hopes that the bank might also explore options related to merchants, such as supporting retailers in providing eating out or fashion experiences through the Monzo marketplace. It was made abundantly clear that Monzo sees its marketplace as becoming core to its business model – and as its primary revenue driver.