MONZO has made a huge change to its buy now, pay later scheme for its customers.
The online-only bank, which is used by more than 13million people, is making it easier to use its Monzo Flex service, with shoppers now being able to choose to “pay later” at the checkout.
Monzo Flex is a buy now, pay later (BNPL) scheme that allows you to spread the cost of purchases over three monthly payments without paying any interest.
You can also extend the repayment period to six or 12 months, but with interest added.
Monzo is now allowing customers to use Flex at the checkout in store or online, once they use Apple Pay.
Previously, shoppers had to pay in full for whatever they were buying on their Monzo Flex credit card, and then choose to spread the cost of the purchase in their banking app.
Now, customers who use Apple Pay can choose at the checkout whether they want to “Pay in Full” or “Pay Later”.
Monzo has said it is the first UK bank to offer buy now, pay later with Apple Pay.
Monzo general manager Kunal Malani said: “Our customers love using their Flex credit card with Apple Pay and we’re thrilled to be the first bank to bring this feature to Apple Pay users in the UK.
“Now our customers are able to choose their monthly payments—right at checkout with Apple Pay when using their Monzo Flex credit card.
“This brings an even more convenient experience for our customers when shopping online.”
Customers will need to have an iPhone and iOS 26.1 or later to use the new feature.
It comes as millions of shoppers who rely on BNPL schemes are to get stronger protections from next year.
The short-term financing schemes are to be regulated by watchdog the Financial Conduct Authority (FCA) from July 2026.
Lenders will be forced to check if borrowers can afford repayments and offer support if they fall behind.
Shoppers will be told upfront about fees, missed payment consequences and credit score impacts.
And if borrowers hit financial trouble, lenders must step in to provide support and advice.
Complaints can also be escalated to the Financial Ombudsman Service, offering fair resolutions for disputes.
It will bring BNPL under Section 75 of the Consumer Credit Act, allowing shoppers to claim refunds or compensation for faulty goods from lenders if retailers fail to deliver.
FCA research reveals 20 per cent of UK adults used BNPL last year, with many owing hundreds in unregulated debt.
In May 2024, 2% of UK adults (1.1million) had £500 or more outstanding unregulated BNPL debt, while 11% (5.3million) had £50 or more outstanding, the regulator found.
How to get free debt help
There are several groups which can help you with your problem debts for free.
- Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
- StepChange – 0800138 1111
- National Debtline – 0808 808 4000
- Debt Advice Foundation – 0800 043 4050
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.
Speak to one of these organisations – don’t be tempted to use a claims management firm.
They say they can write off lots of your debt in return for a large upfront fee.
But there are other options where you don’t need to pay.
