UK-based digital bank Monzo is poised to join the wave of European fintechs venturing into mobile phone services.
Currently in the initial phases of developing its mobile offering, a Monzo spokesperson informed the Financial Times: “We recognized that mobile contracts often pose challenges for our customers, prompting us to investigate how to provide this service in a way that embodies the Monzo experience.”
Instead of establishing its own infrastructure, Monzo plans to operate as a mobile virtual network operator (MVNO), utilizing segments of existing networks from other telecom operators.
Founded in 2015, Monzo has grown to 12 million customers and achieved profitability in recent years. The bank is now focused on diversifying its revenue sources.
Monzo is not alone in exploring mobile plans; in June, BNPL leader Klarna collaborated with Telecom-as-a-Service platform Gigs to introduce a phone plan across several key markets, starting with the United States. Similarly, German neobank N26 has teamed up with Vodafone to provide its customers with mobile services, while Revolut has recently opened a waitlist for its own mobile offering in the UK and Germany.