Monzo becomes the first bank to allow customers to underdo payments.
Monzo has given customers the ability to undo payments as part of its latest product overhaul, at a time when challenger banks continue to push the boundaries of innovation in the face of traditional counterparts.
Announced on May 14, the new feature gives Monzo customers a digital reverse button for payment mistakes. In a blog post, Product Marketing Manager Candice Hardman likened it to the Men in Black neuralyzer — the sci-fi gadget that erases memories with a flash of light.
Customers will have 15 seconds to undo a payment by default, though this can be adjusted to 10 seconds, 15 seconds, 30 seconds or 60 seconds.
Research from Moneyhub recently found one in 10 people in the UK have accidentally sent money to the wrong person. Other common mistakes include setting a payment to be recurring and sending the wrong amount.
“Punching in an extra 0 isn’t the same as buying the wrong size socks […] Making a mistake with a payment can have big consequences; consequences that are often hard to roll back,” read Monzo’s blog.
On this point, the challenger bank noted the difficulty of trying to retrieve the money, describing the process as usually a “long and quite painful” one. Monzo also acknowledged money isn’t guaranteed to be returned through traditional methods.
Monzo has begun to add the feature to select accounts at random, allowing it to improve or fix the feature depending on how people are using the undo button.
How inclusivity is shaping payment tools
Monzo’s approach to product development has played a key role in customer growth, as it seeks to acquire a larger share of the market from traditional incumbents.
Published on May 13, Monzo’s 2024 Diversity and Inclusion Report highlighted the strategy behind some of the bank’s most recent products launched to market.
One example is its redesigned identity verification process, which was changed after consulting blind, neurodivergent and British Sign Language-using customers. Following an update, failed verifications fell by 73%.
The report also highlights customer safeguards like Monzo’s gambling and merchant spending blocks, which form part of its wider product responsibility strategy. According to the bank, these tools helped prevent over £9m in gambling-related transactions in 2024.
Similar initiatives are also being adopted by traditional banks, with the Bank of Ireland announcing a comparable feature last week.
New management drives innovation
Monzo’s latest product update follows a flurry of new releases under Andy Smart, Monzo’s recently appointed Chief Product Officer. At the time of his appointment, Smart and Monzo’s Group CEO, TS Anil, emphasised the importance of building products around customer needs.
“Monzo set out to change the face of finance by bringing the best of banking and technology together, and we’re doing just that. Millions of people now trust Monzo as the place to manage their money – with love for the product and brand that is unparalleled,” Smart said.
“The connection we have with customers has been at the heart of this winning formula and as we press ahead with ambitions to meet all the financial needs of our customers, it will stay core to our product vision. What’s coming next is hugely exciting.”
