Monzo relaunches cash referrals with return of ‘Give £5, Get £5’

One of Monzo’s huge growth drivers between 2018-19 was the bank’s lucrative ‘Give £5, Get £5’ referral scheme.

Between its launch in December 2018 and closure in September 2019, the bank went from 1m to around 3m customers, helped by incredible word-of-mouth popularity.

Today, with just shy of 6m customers, Monzo is bringing its cash referral scheme back.

As revealed in its investor update sent out to backers on Crowdcube, the bank is looking to drive sign-ups in 2022, both with “the return of Give £5, Get £5, and some other exciting initiatives to come!”

A Monzo spokesperson in 2019 told AltFi that ‘Give £5, Get £5’ had resulted in 100,000 signups in the year prior, suggesting that Monzo paid out around £1m in referral bonuses assuming both parties received £5.

Today with a vastly bigger customer base, but also operating in a far more competitive banking environment, it’ll be interesting to see how the scheme impacts Monzo’s customer numbers.

Its reintroduction comes after Monzo raised $600m from its latest Series H funding round, led by Tencent and the Abu Dhabi Growth Fund, valuing the firm at $4.5bn.

In its letter to Crowdcube investors, Monzo said this funding had doubled the price of its shares since the last Crowdcube round in December 2018, from £7.7145 to £14.4125 each.

For earlier Crowdcube investors, the story is even better. Those who invested in November 2017 have now seen a 6x increase on their original investment, investors from April 2017 have seen a 14x increase, and those very lucky early backers from March 2016 have seen a 28x increase.

‘Give £5, Get £5’ has been slowly rolling out to all Monzo customers over the last month, and should be available for all accounts now.