Can You Use Monzo in Dubai?

In 2015, Monzo became a popular digital-only challenger bank in the UK. It offers many services, including current accounts, savings accounts, and investments, as well as features such as real-time transaction notifications and automatic budgeting tools.

However, this article will focus on how to use Monzo in Dubai or other banking options for people living in the United Arab Emirates (UAE).

Overview of Monzo

Monzo is a revolutionary mobile-banking app that lets customers access their banking services on the go.

With Monzo, users can keep track of their finances in real time with notifications for every transaction and avoid overdraft fees.

It includes budgeting tools like automatically categorizing expenses, setting spending goals, and generating reports to help better manage personal finances.

Services Offered by Monzo

As well as offering current account and budgeting tools, Monzo provides customers with other financial products and services.

These include a savings account with competitive interest rates, personal loans, stocks, and funds investment through the app.

Several overdraft protection solutions are available from Monzo, like automatic blocking of overdrafts or an interest-free limit of up to £250 ($338).

The Popularity of Monzo in the UK

With over 7 million customers in the UK as of 2021, Monzo has become highly popular due to its user-friendly app and range of financial products.

Innovative features such as real-time transaction notifications and budgeting tools have been well-received by users for helping them manage their finances better.

In 2020, Monzo was ranked first among current account providers in customer satisfaction, surpassing traditional banks like Lloyds Bank and Barclays.

Use of Monzo in Dubai

Founded in 2015 and based in the UK, Monzo operates solely online. If you’re planning a trip to Dubai, Monzo is one of the many banks available for your financial needs, but it has its limitations.

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There are no physical locations like traditional banks such as HSBC or Wells Fargo.

Because it still needs to get a banking license or infrastructure set up outside of its home country.

Customers who travel abroad or live abroad can’t access their accounts through Monzo while away from the United Kingdom.

However, even though you may not be able to open an account with them in Dubai specifically, you can still use what they offer.

You can still pay expenses using your card at restaurants and hotels and withdraw cash from ATMs that accept Mastercard wherever applicable.

The advantages of having a Monzo account make traveling much more convenient. With its easy and efficient transactions, getting a Monzo account is worth it!

Benefits of Using Monzo in Dubai

When you use Monzo abroad, there’s no need to do anything before or after your trip! You can pay online and withdraw money from an ATM without notifying them.

This gives you more control over your card compared to traditional banks. You allow worry-free payments and fewer blocked cards when traveling overseas.

Monzo offers a great range of benefits for those planning to take a trip: No notification is needed so you can travel wherever and whenever.

Access the best exchange rates with international spending fees capped at 1%. Real-time notifications are sent directly to the Monzo app.

Other features like budgeting tools make managing finances while away even easier! Let’s take a look at a few benefits of using Monzo in Dubai here:

1. Free Foreign Transaction Fees

Monzo is the perfect solution for spending abroad, as there are no transaction fees to worry about.

Unlike traditional banks, Monzo does not charge an extra fee on international transactions and even offers a Mastercard exchange rate so you can get the best deal available when exchanging money.

With Monzo, you don’t have to pay additional charges while using different currencies, making it easier than ever before to spend internationally!

2. Withdraw from Any ATM for Free (With Limits)

Monzo is a great option for withdrawing money abroad as it does not charge fees.

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However, you must be aware of the limits set by Monzo: if in a European Economic Area (EEA) country such as EU countries, Iceland, Norway, and Liechtenstein, you can withdraw up to 250 pounds free every 30 days.

While outside EEA, like Dubai, there’s a limit of 200 pounds per month that is fee-free, after which 3% will apply.

Thanks to their partnership with Moneypass, users can find out which ATMs allow cash withdrawal without charges or commission, but Monzo cannot guarantee any extra costs from operators.

Withdrawing from ATMs accepting Mastercard still carries zero cost on behalf of Monzo, even though international commissions may vary depending on operator policy

3. Track Your Travel Expenses

Monzo gives you more than just fewer charges compared to other banks. It also shows the current currency rate, provides travel suggestions when using your card in foreign countries, and automatically categorizes purchases as vacations or costs while abroad.

Monzo produces a travel report upon returning home, which helps track expenses incurred during the trip.

4. No Need to Notify Monzo

When traveling abroad, you can wait to notify traditional banks beforehand.

However, with Monzo, your card will not be blocked, meaning you can access funds while away.

5. Freeze Your Card

Monzo gives you greater control over your card – if it gets lost, you can freeze it immediately without calling your bank.

You can do this from the Monzo app and then unfreeze when needed, ensuring that all of your money is safe at any time.

This makes traveling abroad with Monzo easy and stress-free!

Limitations of Using Monzo in Dubai

The lack of availability of Monzo in Dubai means that customers cannot use the app to manage their finances while in the UAE.

This can be inconvenient for customers who are used to using Monzo’s user-friendly app and innovative features.

Individuals relying on its overdraft protection or savings options may need to seek out alternative solutions when visiting Dubai.

Due to Monzo not being available in Dubai, customers cannot utilize the full features in the UAE.

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This can inconvenience those who regularly use and benefit from Monzo’s user-friendly interface and innovative features.

1. ATM & Payment Processor Limitation (Mastercard Only)

Monzo, a startup company, needed help finding the right cooperation partner.

A breakthrough came when they partnered with Mastercard in October 2015 and successfully launched their first prepaid debit card.

Monzo had 350,000 customers using this payment method within two years of its launch!

The partnership has proved beneficial for both parties. Not only is Mastercard supportive of innovative financial technology companies like Monzo, but it also provides better conversion rates than Amex or Visa and no hidden costs.

Monzo continues to be supported by Mastercard’s global recognition so that users can use their cards anywhere worldwide in any currency without extra fees on top.

2. Withdrawal Amount Limitation

In the European Economic Area (EEA), cash withdrawals from ATMs are free of charge for 30 days, with a limit of 250 pounds. The EEA includes EU countries and Iceland, Norway, and Liechtenstein.

After that, Monzo will apply a 3% fee on any further withdrawal within the same period. For Dubai, which is not part of EEA, you can only withdraw up to 200 pounds without extra charges every 30 days.

After surpassing this limit, there will be an additional 3% cost applied by Monzo to cover fees related expenses since it does not make profits through these charges.

In conclusion, Monzo is a great option for those traveling or living in Dubai. As a mobile-banking app that operates solely online.

Monzo offers a range of benefits, such as free foreign transaction fees, free cash withdrawals from ATMs (with limits), real-time transaction notifications, and the ability to track your travel expenses.

Plus, with Monzo, you don’t have to notify them before traveling, and you can even freeze your card if it gets lost. With these features and more, Monzo makes managing your finances while abroad easier and stress-free.

So, if you’re looking for a convenient and efficient banking solution, consider getting a Monzo account. It’s worth it!

Reference:

  1. Monzo Community | Use of Monzo in Dubai – https://community.monzo.com/t/monzo-in-the-uae/3192/17
  2. Combadi | Using Monzo for Traveling Abroad – https://combadi.com/can-you-use-monzo-in-dubai

 

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