Customers react as millennial favourite Monzo launches £180-a-year premium account with ‘white steel card’

It already has the most distinctive bright orange debit card around. And now digital bank Monzo has launched a new card made from white steel to accompany its new £180-a-year premium account.

The “Monzo Premium” account, launched on Tuesday, has been launched despite the downturn in an attempt to raise revenues.

Although revenues rose to £67.2million, Monzo’s latest accounts show losses rose to £113.8m from £47.1m in the 12-months to February 2020. The bank told The Telegraph in July that the pandemic had caused "material uncertainties" about its operations.

The new account includes a 16g stainless steel card and comes with benefits its previous free account did not offer, including travel and gadget insurance, airport lounge access, and a 1.5% interest rate on deposits up to £2,000.

It also includes £600 of fee-free withdrawals abroad each month.

Monzo VP of marketing, Tristan Thomas, wrote on Twitter: “A huge well done to the whole team who've been working on this over the last few months... I'm so glad I got to see it launch! The insurance is v high quality and provides real value, and the card makes me feel like a baller.”

But others commented that features aimed at in-person transactions and travel insurance mean the card would not be a choice for them mid-pandemic.

One Twitter user, communications consultant Sharon O’Dea, wrote: “The market of people who’ll pay for travel insurance and a metal card during a pandemic where you can’t travel or eat out can’t be huge.”

Another, Kane Fuller, quipped: “The 'white steel card' sounds fetching. I can imagine looking really flash when I whip it out in my living room for the 10th time in a month to order a Deliveroo.”

However, the company has pointed out that the Premium Account is ideal for pandemic-era travelling, as its insurance will cover travel cancellation costs up to £5,000, and flight delays of more than four hours.

Monzo, which has around 4.6 million customers, gained a loyal following among millennials and Gen Z in recent years, in part due to its ability to be used charge-free when travelling outside the UK, and because it was billed as an easy way to keep on top of spending.

Users are notified whenever they purchase with the card, and are given a monthly breakdown of spending – allowing the chance to see exactly how much the cappuccino-a-day habit is costing.

Premium account holders will also get five “virtual” cards for use on phones, and updated budgeting features.

Monzo is not the first digital bank to launch a metal card in a bid to stand out, as Revolut and Curve have both previously launched versions.

Mike Hudack, Monzo’s chief product officer, said the steel card was not the key feature and that the account is “valuable with or without” it.

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