Fintech giant Klarna enters mobile carrier market with unlimited 5G service through AT&T’s network infrastructure
Three Key Facts
- Klarna launches $40/month mobile plan targeting 25 million US users through partnership with Telecom-as-a-Service platform Gigs, utilizing AT&T’s network infrastructure.
- MVNO market expansion opportunity valued at $14.83 billion in 2025 and projected to reach $20.84 billion by 2030, driving fintech diversification beyond core payment services.
- Global rollout planned for later 2024 with premium services and international expansion to UK, Germany, and other markets following US launch.
Introduction
Swedish fintech giant Klarna expands beyond its core Buy Now, Pay Later services by entering the competitive US mobile market. The company launches an unlimited 5G data plan priced at $40 monthly, targeting its existing base of 25 million American users through a strategic partnership with Google-backed Gigs platform.
This move positions Klarna alongside other financial technology companies diversifying into telecommunications services. The expansion represents a significant shift in fintech strategy, where companies leverage existing customer relationships to capture additional revenue streams in adjacent markets.
Key Developments
Klarna partners with Telecom-as-a-Service platform Gigs to offer mobile virtual network operator services without owning physical infrastructure. The collaboration utilizes AT&T’s established network to deliver unlimited 5G data, talk, and text services directly through the Klarna mobile application.
The service addresses consumer pain points in mobile plan switching, with Klarna citing surveys showing half of Americans find the process difficult. Users can transfer existing phone numbers or obtain new ones while activating plans entirely within the app, eliminating traditional barriers like store visits or paperwork.
According to Finextra, Klarna plans to introduce premium and international phone services later this year. The expansion timeline includes launches in the UK, Germany, and other European markets, following the US-first approach that contrasts with typical fintech market entry strategies.
Market Impact
The US MVNO market presents substantial growth opportunities, with current valuations reaching $14.83 billion in 2025. Industry projections indicate the market will expand to $20.84 billion by 2030, creating significant revenue potential for new entrants like Klarna.
Klarna’s $40 monthly pricing positions the service competitively within the MVNO landscape. The pricing strategy targets both cost-conscious consumers and fintech-engaged users who already utilize Klarna’s payment services for regular transactions.
The move follows similar strategies by competitors including British neobank Revolut and German fintech N26, both exploring mobile plan offerings. Brazilian fintech Nubank has also entered mobile services, indicating a broader industry trend toward telecommunications diversification.
Strategic Insights
Klarna’s telecommunications entry exemplifies the growing fintech trend of embedding financial solutions into daily digital experiences. The company adopts an asset-light approach by partnering with established infrastructure providers rather than building proprietary networks, reducing capital requirements and operational complexity.
The service integrates artificial intelligence capabilities, providing users with personalized recommendations for better pricing models. Users can implement suggested changes with single-click functionality, demonstrating Klarna’s focus on seamless user experience and automated financial optimization.
This diversification strategy allows Klarna to expand revenue streams beyond traditional payment processing while leveraging its existing customer base. The approach reduces customer acquisition costs and increases user engagement within the Klarna ecosystem.
Expert Opinions and Data
Klarna CEO Sebastian Siemiatkowski emphasizes the expansion’s alignment with the company’s core mission. “Klarna has saved consumers time and money, and reduced financial worry for over 20 years. With mobile plans, we’re taking that one step further, as we continue to build our neobank offering,” he states.
Siemiatkowski further explains the strategic rationale: “Our ambition has always been to solve everyday problems … mobile is a natural next step in building out our neobank offering.” This positioning reflects Klarna’s evolution from payment facilitator to comprehensive financial services provider.
Gigs CEO Hermann Frank highlights the integrated approach to mobile and financial services. “Now, consumers can expect a seamlessly integrated mobile experience that bundles premium connectivity with financial tools, all through the apps they already know and love,” he notes.
Juniper Research analyst Alex Webb predicts significant disruption in the MVNO market over the next two years, supporting the timing of Klarna’s entry into this evolving sector.
Conclusion
Klarna’s mobile plan launch demonstrates the fintech industry’s evolution toward comprehensive lifestyle service platforms. The company leverages its substantial US user base and brand recognition to enter the competitive telecommunications market through strategic partnerships rather than infrastructure investment.
The move positions Klarna among financial technology companies expanding beyond core payment services into adjacent markets. Success in this venture could establish a precedent for other fintech firms considering similar MVNO models, potentially reshaping how consumers access integrated mobile and financial services.
