Monzo is reportedly planning to enter the ‘buy now pay later’ market, looking to compete with the likes of Klarna and PayPal.
The Evening Standard cited two industry sources as saying that the digital bank is working on a launch for the payment product, with an announcement expected as soon as next week.
The Standard said Monzo would be one of the first regulated banks to launch a version of BNPL.
Last week, the Standard reported that fintech Revolut was looking to move into the market. The company’s chief executive, Nikolay Storonsky, told the paper that Revolut was working on products that will let customers spread the cost of purchases made both online and in person. Storonsky said the group was working on a checkout feature and the ability to let its 16m customers automatically spread the cost of any purchase made using its cards.
BNPL was pioneered by Sweden’s Klarna and the Financial Conduct Authority now estimates that around 5 million Britons use the facility.
