Monzo launches £180-a-year metal card in drive to boost revenues

Digital banking business Monzo has launched a new £180-a-year metal card as it hopes to raise revenues and eventually attain profitability.

The company’s new “Monzo Premium” service includes a 16g stainless steel card plus a package of other features including gadget and travel insurance as well as a 1.5pc interest rate.

Monzo is positioning the new card as a way to save money by bundling together services like insurance which the company says could save customers £80 a year.

Customers will also be able to pay £15 per month for a minimum of six months for the metal card service.

Mike Hudack, Monzo’s chief product officer, said he doesn’t view the package as a luxury product.

“Lots of people want them, whether or not people consider it luxury,” he said. “The package speaks for itself with or without the metal card. It is valuable without the metal card.”

Subscribers will also be given airport lounge access as well as five virtual cards and advanced budgeting features.

Monzo's metal card will initially only be available in a white design

Credit: Monzo

Monzo, which has amassed 4.6 million customers, follows rivals Revolut and Curve which launched their own metal card subscriptions in 2018 and 2019 respectively.

The new Monzo metal card will initially only be available in a white design but Mr Hudack said other colours are likely to follow.

The launch of the new subscription service comes after Monzo launched a cheaper subscription tier, Monzo Plus, earlier this year. The company has so far attracted more than 50,000 subscribers for the cheaper service which costs £5 per month.

Monzo previously experimented with charging £7.50 a month for its metal card last year but waited more than a year before launching the service.

Releasing these subscription products could help Monzo to boost its revenues and offset rising losses. The company’s latest accounts show losses rose to £113.8m from £47.1m in the 12-month period to February. Revenues rose to £67.2m from £19.7m.

The company’s valuation dropped from more than £2bn to around £1.25bn earlier this year as part of a £60m funding round.