Users of Monzo’s new BNPL product “Flex”, will be able to pay via Apple Pay or Google Pay using a virtual card.

Monzo’s feature will allow users to pay anywhere that accepts contactless and to use the card details to shop online.

Flex users will need to have enough money in their current account to cover the first minimum instalment, and the transaction must be over £30 for the payment to go through.

Flex will allow Monzo users to make payments of up to £3,000 in three instalments at zero per cent interest, via six or 12 instalments at 19 per cent variable APR.

Monzo first announced it was set to enter the BNPL market in September, the same month that rival challenger bank Revolut announced it would enter the growing field.

More than a quarter of UK shoppers are now regularly using BNPL, according to research from credit reference agency Equifax released this week.

Monzo was valued at £1.25 billion in its most recent Series G funding round in February 2021, a fall from its peak valuation of £2 billion.

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