Monzo to launch transaction process in-house following 'severe outage'
By Alex LynnMonzo has announced plans to cease using a third-party card processor after a "severe outage" on 5th March left customers temporarily unable to use the Monzo card or app
Section: mobile apps categories
The digital challenger bank currently uses a third-party processor to connect to payment networks such as MasterCard, meaning the bank is not able to approve any transactions unless the system is operational.
In a blog post explaining why the card had stopped working, the bank revealed that it had now finished a 12-month project to connect directly to MasterCard when it launches its current account later this year.
Oliver Beattie, head of engineering at Monzo, said: “Using a third-party processor made a lot of sense when we first started our alpha program – connecting directly to payment networks like MasterCard is a long, costly and complex process, and at the time it didn’t seem like there would be any benefit to our customers from doing this.
“However, over the past year we have reassessed this decision; to ensure we have total control over the customer experience, we need to have a direct connection to payment networks.
“We see ourselves as a technology company as much as a bank, and going forward our strategy is to bring all critical systems in-house and continue to develop our own platform atop modern technology which we control.”
On 6th March, Monzo confirmed that the third-party card processor had repaired their systems and its cards were working again.
The announcement follows news that Monzo has agreed a £19.5m investment round ahead of its planned current account launch.
Keywords: Monzo, challenger bank, digital bank, card processor, payment system, Mastercard, current account, Oliver Beattie, investment round,