Monzo has built a new feature called ‘Get Paid Early’ which allows you to get paid a day early, for free and with no hassle!
Typically, Monzo customers receive their salary into their accounts through an outdated system called BACS (Bank Automated Clearing System), which means it can take up to three days for the money to reach their account after it is sent from their employer.
Motivated to speed things up, Monzo created ‘Get Paid Early’, a new feature that allows you to get your hands on your money a day earlier than usual.
So, how does this work? Monzo explained that by 4pm on the day before customers' ‘payday’, they are confident that the money will arrive into their account as they can already see it coming into the system. So they decided they could advance them the money at this point, giving customers more control over their money.
How can Monzo customers ‘get paid early’?
If you’re a Monzo customer, and you already receive your salary into your Monzo account, it couldn’t be any simpler. Monzo will simply notify you through the app the day before you're due to be paid (or on Friday if you're paid on a Monday).
If you don’t already get paid directly into your Monzo bank account, it’s easy to set this up in the Monzo app, through the ‘Add money’ function on the home screen. You’ll also need to double check you receive your salary by BACS, which 90% of the UK population do.
The free feature from Monzo covers any BACS credit payment, meaning that pensions, student loans and tax credits can also be pulled forward.
A Monzo exclusive feature
All of the UK challenger bank’s two million+ customers will be able to benefit from receiving their salary early, regardless of their creditworthiness.
The feature is currently exclusive to Monzo, but all banks technically have access to the information to be able to advance the money to their customers.
‘Get Paid Early’ might therefore encourage more customers to switch to Monzo or begin using it as their primary or sole current account. Getting paid directly into Monzo will help customers better control and manage their spending through the app’s other functionalities, such as the ability to set budgets, create money pots for savings, and notifications whenever you spend.