Monzo users are to be contacted and offered access to a new Monzo current account in the next eight weeks, and new sign ups to prepaid cards are set to be closed this week.
The mobile-only banking platform has announced that all existing users of prepaid cards will be invited in the next eight weeks to sign up for a current account. The company states that for those who wish to sign up will have all balances and data “seamlessly” transitioned to a new app, and will have a debit card sent to them in the post.
The transition is set to affect nearly 450,000 prepaid card users. Moneywise has asked Monzo what will happen to those prepaid card users who do not wish to sign up for a current account. A company spokesperson says, "existing users will be steadily invited to upgrade to a current account, and we'll eventually be closing the prepaid programme entirely. We don't have an exact date for when that will be, but after this point people will have to upgrade if they want to continue using Monzo."
Anyone on the waiting list for a prepaid card will still receive their card and use of the prepaid app, but these too will eventually be moved onto current accounts.
For anyone who is not a Monzo customer but wishes to sign up for a new mobile current account, they will be able to sign up to the waiting list from this week. Monzo has stated that it will continue to implement a waiting system for new current accounts.
When users initially download and sign up for a product in the app, they are put into a queue, often running into the thousands. The wait time in this queuing system can be reduced by inviting friends to also sign up to the service.
Current functionality on the current account app differs from prepaid cards. Users are not able to “top-up” using another bank card, and must make a bank-to-bank transfer to the Monzo current account. The new product does however have the added benefit of all the functionality of a regular current account, such as making direct debit payments and receiving salary payments. According to the company, the new current account system will also eventually operate the Current Account Switching Service (CASS) for those who wish to switch from their existing current account provider.