Monzo has announced that it is closing its legacy prepaid cards programme over the next few months; Monzo account holders who have yet to upgrade their accounts to their full current account will need to do so in order to continue using a Monzo card.
The reasoning is that it is much cheaper and more reliable for Monzo to run their own systems, and they’ll be able to provide new features to upgraded users, such as having a sort code and account number, transfers to other banks, and Monzo’s “Pots” feature; where money can be put aside for a specific purpose. It will also add Direct Debit support and is part of the FSCS; the government-backed “banking safety net”.
Prepaid cards were used in the early stages of the development of Monzo as it allowed them to build a userbase and test features prior to receiving their own banking licence. Now the banking licence has been secured, it makes sense for Monzo to make the switch away from the prepaid cards.
For users who haven’t yet upgraded, the upgrade itself is free, and there are no new charges for doing so. Once you upgrade to their full current account product you’ll receive your new card “within a couple of days”.
If youâ€™re still using your Monzo prepaid card in early February, youâ€™ll be given you 60 daysâ€™ official notice that theyâ€™re closing the prepaid programme by email and in the Monzo app.
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