In a significant move for digital banking, Monzo has rolled out a major update to its Flex credit product that will change how millions of its customers shop online. The online bank is now allowing users to select buy now, pay later options directly at the checkout when using Apple Pay, streamlining a process that was previously more cumbersome.
How the New Monzo Flex Feature Works
Previously, customers who wanted to spread the cost of a purchase using their Monzo Flex credit card had to pay for the item in full at the point of sale. They would then need to open the Monzo banking app separately to manually select the option to split the payment into instalments.
The new system eliminates this extra step. Shoppers can now choose their repayment plan instantly when they authorise a payment with Apple Pay. To use this feature, you must have an iPhone with iOS 26.1 or a later version installed.
Monzo Flex typically allows customers to split eligible purchases into three interest-free monthly payments. Alternatively, users can opt to spread the cost over six or 12 months, although these longer plans come with interest charges.
Industry First and Regulatory Changes
Kunal Malani, General Manager at Monzo, stated: “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.” He emphasised that this development offers a more convenient checkout experience for customers shopping online.
This innovation arrives as the Financial Conduct Authority (FCA) is tightening its oversight of the buy now, pay later sector. The regulator has launched a consultation over concerns that some consumers are accumulating unaffordable debt.
Under new proposals set to take effect when BNPL comes under FCA remit in July 2026, providers will be required to conduct affordability checks on borrowers and offer support to those in financial difficulty. Borrowers will also gain the right to complain to the Financial Ombudsman Service. Firms will have a six-month window to apply for full authorisation once the new regime begins.
The Scale of BNPL Use and Potential Pitfalls
FCA research reveals the widespread use of these services. In the 12 months to May 2024, one in five UK adults (roughly 10.9 million people) used a buy now, pay later product at least once, an increase from 17% in 2022.
The data also highlights potential debt risks. In May 2024, approximately 1.1 million people had £500 or more in outstanding unregulated BNPL debt, while 5.3 million people had £50 or more outstanding.
Monzo reminds users of the importance of managing repayments responsibly. If a Flex payment is missed, customers have a seven-day grace period to make the payment in the app. After this, the missed payment can affect the user's credit score and may result in them being moved to a longer, interest-bearing payment plan.
