Customers of UK neobank Monzo can now create virtual debit cards for specific kinds of expenditure that are linked directly to funds they have set aside for that purpose rather than to their main bank account.
To date, Monzo customers have only been to make payments from such ring-fenced funds — known as Pots — by direct debit or standing order, but the bank is now adding the option of making in-person and online card payments directly from an individual Pot without the user first having to transfer funds back into their main account.
The service is available to holders of Monzo Plus or Monzo Premium accounts and enables users to set up a virtual debit card to draw on funds they have set aside in a Pot for the purchase of a high-cost item such as a car, for regular payments such as utility bills and subscriptions, and for types of expenditure that they wish to monitor and limit to a set budget.
“Set money aside for an upcoming holiday then book your travel and accommodation from that ring-fenced cash,” Monzo says.
“That way you’re in total control of your spending, because you decide where the money comes from and how much you can spend.
“While you’re away, pay on card from the same Pot to use it as your holiday spending money, so all the expenses for that trip come from one place.
“Holidays are one example of how you’d use paying from a Pot, but there are many others,” the bank adds.
“Stop at a café on the way to work and pay for your morning croissant directly from your Pastries Pot.
“Give yourself a self-care budget for things like Deliveroo or beauty treatments and enjoy it, without having to worry about overspending.
“Even create a Pot for making charity donations so you get a statement at the end of the year showing all the causes you supported.”
Monzo Plus and Monzo Premium account holders can create and hold up to five digital cards — which are compatible with both Apple Pay and Google Pay — at any one time.
Monzo lets customers link virtual debit cards to funds ring fenced for specific types of expenditure was written by Tom Phillips and published by NFCW.