Monzo doing a Tymit

I might be a bit behind the curve here, but I’ve just found out Monzo are starting to offer 3 months 0% BNPL á la Tymit. They’re calling it Monzo Flex.

That could put the cat among the pigeons at Tymit Towers. :grimacing:

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Monzo is a debit card, so not the same protection. I don’t think Tymit has much to worry about from Monzo specifically. The whole industry is piling into BNPL though, which will make competing generally harder

Monzo will also offer a virtual credit card with Flex soon

However they only let you flex the payment for 2 months – the first instalment is due instantly

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It’s a good sign that others are imitating Tymit but doing it less well. Visa and Mastercard are both implementing BNPL at the network level so it looks like all card issuers will be able to easily offer instalment options to their cardholders, which must be a major threat to Tymit

You and I know about Section 75 protection, but I’m sure the great majority of the population don’t. Plus Section 75 only applies where the merchant has ceased trading and there’s no money in their merchant account for a chargeback. Chargebacks apply equally to credit and debit card purchases. I can only judge by my own experience, but having made half a dozen or so chargebacks on both debit and credit cards, but never having had a S75 claim, I’d guess chargebacks are much more common.

Plus, Monzo has a captive audience of 5 million or so to sell the product to. I still think that’s a pretty big threat to Tymit. How many customers have Tymit managed to attract so far? Anybody know?

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That’s just blatantly false.

any claim against the supplier in respect of a misrepresentation or breach of contract

Section 75 applies in many instances where you could also choose to start a chargeback but a S75 claim is usually quicker and easier

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Perhaps I should have said S75 would “only be applied” if a chargeback couldn’t be used or was disputed, rather than “only applies”.

I’m not sure how you think S75 would be quicker or easier.

I’ve had a chargeback with money back in my account while I was still on the line with the agent. Obviously, if the merchant had disputed the chargeback it might’ve gotten more complicated. But without any doubt it was far quicker and easier than a S75 claim.

She sent me a link to an online declaration form. I completed it there and then, and she credited my account immediately.

In practice, any card issuer would surely go for a chargeback first. They’d be mad not to. They are hardly going to cover the transaction at their own expense under S75 if the merchant is still solvent and trading and the money can be clawed back from them!

In a nutshell, this is exactly what S75 does. It makes the card provider jointly liable with the merchant…

Have a read of the MSE page on this. It’s as good a place to start as any.