Digital-only bank Monzo has built a new feature
UK digital bank lets customers get paid a day early. Source: unsplash.com
Digital-only bank Monzo has built a new feature called Get Paid Early. It lets customers receive their salary or student loan a day earlier than usual, for free.
Most salaries and student loans come into Monzo accounts through a system called Bacs (short for Bank Automated Clearing System). The Bacs system is a bit outdated, so from the day your employer sends you the money, it usually takes three days to reach your account. We wanted to see if we could speed things up. By 4pm on the day before your money is due to arrive, the receiving bank you get paid into is confident the money will arrive because they can see it coming in the system. So all banks could technically advance you the money at this point. Most banks choose not to, but we thought it was fair to give you the choice to get your money sooner
To use the new feature, a customer needs to get their salary paid directly into their Monzo bank account via the app. Also, they’ll need to be paid by Bacs (most people are).
If a customer is already paid into their Monzo account, they don’t need to do anything. The bank will notify them the day before they’re due to be paid (or on Friday if they’re paid on a Monday).
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