- Monzo is launching a UK mobile network service later this summer.
- The company says customer phone bills will reduce by 5 per cent each year, up to a maximum 30 per cent discount.
- Monzo Mobile will run on Virgin Media O2’s O2 network with plans starting from £8 per month.
Monzo is moving into the UK mobile market with the launch of its own phone service, taking on established providers including EE, O2, Three UK and Vodafone.
The app-based bank said its new service, called Monzo Mobile, will launch later this summer and will offer SIM-only plans that become cheaper the longer customers stay subscribed.
Under the model, monthly bills will fall by 5 per cent every year, reaching a maximum discount of 30 per cent after six years.
The move marks Monzo’s latest expansion beyond digital banking as fintech companies increasingly push into adjacent consumer services including mobile payments, insurance and telecommunications.
Loyalty discounts enter the mobile battle
Monzo Mobile will initially offer three SIM-only plans.
Prices start at £8 per month for 10GB of 5G data, £12 for 30GB and £20 for unlimited data. All plans include unlimited UK calls and texts.
The company said customers who remain with the service long-term could eventually reduce the £8 monthly plan to around £5.60 after six years through the loyalty discount structure.
Unlike many traditional providers, the plans will run on rolling monthly contracts rather than lengthy fixed agreements.
The service will operate as a mobile virtual network operator using O2’s network infrastructure, while international roaming coverage will be supported through telecommunications partner 1GLOBAL.
Monzo said the service would include features such as Wi-Fi calling, hotspotting, visual voicemail and 24-hour in-app customer support.
A growing fight for mobile customers
Industry analysts say Monzo’s arrival reflects growing competition between fintech firms and traditional telecom providers.
Jez Samuel reportedly said more companies entering the market could increase choice for consumers, although he noted that reaching the maximum loyalty discount would require customers to stay with the provider for six years.
Samuel also reportedly pointed out that Monzo Mobile will operate as an eSIM-only product, meaning customers must own compatible smartphones because physical SIM cards will not be available.
The launch places Monzo alongside other fintech firms including Revolut and Klarna, both of which have also explored broader consumer technology services beyond finance.
Monzo customers can currently join a waiting list through the banking app ahead of the official launch later in the summer.
The company has not yet confirmed an exact rollout date.
