What just happened? Klarna, the Swedish fintech known for its buy-now-pay-later services, is entering the US telecom market with its own unlimited 5G mobile plan. The rollout, expected in the coming weeks, puts Klarna alongside a growing number of fintech companies using mobile services to diversify their offerings and deepen their relationships with consumers.
Klarna's new mobile plan costs $40 per month and offers unlimited 5G data, talk, and text on AT&T's nationwide network. Customers can sign up directly in the Klarna app on iOS or Android, with eSIM activation allowing them to transfer an existing number or choose a new one. There are no activation or cancellation fees, and Klarna emphasizes transparent pricing and flexible contracts as key features of the service.
Klarna is leveraging Gigs, a San Francisco – based platform that enables companies to launch mobile virtual network operator (MVNO) services without owning the underlying infrastructure. Through its partnership with AT&T, Gigs provides the technical backbone for Klarna's new service.
The launch reflects Klarna's broader push beyond payments and lending as it aims to become a full-service digital platform spanning spending, saving, and connectivity. With more than 25 million active US users, the company sees mobile service as a natural fit for its neobank ambitions. Klarna CEO Sebastian Siemiatkowski called the move a step toward solving everyday pain points and creating a seamless ecosystem of financial and lifestyle services.
Consumers interested in switching can join a waitlist ahead of the official launch. The plan's rollout begins in the US, with expansion to the UK, Germany, and other markets planned later this year. The company says it will eventually add premium plans and international roaming options.
Klarna's entry into telecom follows a broader fintech trend, with companies like Revolut and N26 leveraging their large user bases and digital expertise to penetrate the mobile market. Mordor Intelligence estimates the US MVNO market at $14.83 billion today, projected to reach $20.84 billion by 2030.
"There will be significant disruption to the MVNO market over the next two years, as enterprises try their hand at launching their own MVNO service," Juniper Research analyst Alex Webb told Reuters. "However, increased competition brings increased risk, so not all MVNO projects are likely to be successful."
Klarna's mobile plan positions itself as a straightforward alternative to traditional carriers, promising no hidden fees, no data throttling, and customer support fully managed through the app. Company research shows many Americans find switching phone plans overly complex, and Klarna aims to attract those seeking simplicity and transparency in their mobile service.
Klarna enters US telecom market with unlimited 5G mobile plan
