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Swedish fintech unicorn Klarna has recently ventured into unexpected territory: the mobile phone industry. Traditionally recognized for its buy-now-pay-later (BNPL) service, Klarna is now launching a $40-per-month phone plan in the United States, providing unlimited 5G data, voice calls, and text messaging—powered by AT&T’s robust network. This move places Klarna in the growing ranks of mobile virtual network operators (MVNOs) and underscores its ambition to evolve beyond its payment origins.
Set to debut “in the coming weeks,” this new phone plan is Klarna’s answer to the booming demand for affordable, flexible, contract-free telecom services. As part of Klarna’s strategy, users will be able to sign up directly through its existing app, enjoy eSIM activation, and take advantage of the tight integration with other Klarna financial tools.
Mobile Virtual Network Operators (MVNOs) are telecom providers that sell wireless services without owning the underlying network infrastructure. Instead, they lease capacity from mobile carriers—such as AT&T, Verizon, or T-Mobile—and package it under their own brand. This structure enables smaller, more agile companies to enter the highly regulated telco market with minimal infrastructure costs.
Over the last decade, MVNOs have surged in popularity. Companies like Mint Mobile, Cricket Wireless, Xfinity Mobile, and Visible (Verizon’s MVNO) have disrupted the mobile space by offering budget-conscious, no-contract plans. Their services typically emphasize simplified pricing, eSIM adoption, and digital-first customer experience—traits that appeal strongly to consumers tired of rigid carrier contracts.
Now, Klarna joins this expanding group, leveraging AT&T’s coverage and network strength. But unlike many MVNOs that rely solely on telecom, Klarna distinguishes itself by weaving connectivity into a broader financial services ecosystem.
To build and manage its mobile infrastructure, Klarna has partnered with Gigs, a platform specializing in helping businesses launch and run their own MVNOs. This white-label approach minimizes technical hurdles—simplifying the otherwise complex process of telecom operations—and lets Klarna focus on customer experience and integration.
One of the plan’s standout features is its eSIM-only model. Traditional SIM cards are replaced with digital SIMs embedded in smartphones, which can be activated instantly. There are no physical cards to ship, no insertion needed—just a smooth digital onboarding process through the Klarna app. Users can either port their number or get a new one, all within minutes. This aligns seamlessly with Klarna’s strategy of removing friction and offering frictionless services.
This approach not only reduces logistics and operational overhead but is also in tune with consumer demand for seamless, app-based onboarding experiences.
Despite its new telecom ambitions, Klarna remains firmly rooted in Buy-Now-Pay-Later finance—its original raison d’être. This model enables consumers to split their online purchases into smaller, often interest-free, installments. The appeal lies in affordability and convenience, especially among younger demographics and larger-ticket purchases.
However, BNPL isn’t without controversy. According to a 2024 report by the U.S. Consumer Financial Protection Bureau (CFPB), frequent BNPL users are more likely to accumulate substantial debt than non-users. Likewise, a LendingTree survey revealed that 41% of BNPL users experienced at least one late payment within the past year. These trends have sparked conversations about consumer protection, credit impacts, and clear disclosure of terms.
Meanwhile, BNPL companies—including Klarna—had been expecting tighter regulations. The CFPB announced intentions to impose stricter rules, aiming to ensure transparency and fairness. But in a surprise pivot, the Trump administration recently shelved these regulatory plans. While this was hailed by fintech leaders, consumer advocates remain cautious.
With BNPL under increasing scrutiny, diversifying into telecom offers Klarna a way to hedge its bets. If policymakers introduce constraints on BNPL products, Klarna’s expanded revenue streams—like mobile services—can buffer the impact. This move also signals to investors that Klarna is more than a fintech; it’s evolving into a broader technology company.
Today’s digital giants aim to create “super-apps”—integrated platforms offering multiple services. Klarna’s telecom entry follows similar logic. By combining payments, shopping, financing, and now connectivity, Klarna is crafting a comprehensive ecosystem. This “all-in-one” approach deepens user engagement and makes switching to competitors more cumbersome.
Speaking with CNBC, Klarna’s CEO Sebastian Siemiatkowski framed this expansion as the start of something larger—a step toward transforming Klarna into a digital financial assistant. His vision includes:
In essence, Siemiatkowski envisions Klarna as a proactive partner—one that not only processes payments but also helps users make smarter financial decisions.
The U.S. telecom market is fiercely competitive. MVNOs like Mint, Visible, Cricket, and Simple Mobile, along with cable-provider alternatives like Xfinity Mobile, compete aggressively on price and coverage. Major carriers—AT&T, Verizon, T-Mobile—continue to upgrade 5G networks, pushing MVNOs to match quality service while keeping margins thin.
Klarna distinguishes itself in two key ways:
Key questions remain: Will consumers appreciate telecom bundled within a finance app, or prefer standalone telecom companies? Will Klarna’s AI-driven value optimization truly differentiate its offering? Answers will shape whether Klarna can carve out market share in telecom.
AT&T’s network provides strong coverage, but how well Klarna’s offerings compare—in speed, customer support, and data prioritization—will be critical.
At $40/month for unlimited, Klarna enters mid-tier pricing. Offers from Mint or Visible may undercut it, while premium customers may opt for faster 5G speeds of major carriers.
Will Klarna’s AI service recommendations work seamlessly? If the app can truly identify overpayments and handle switching instantly, that may be its killer feature.
Launching a service is one thing; keeping customers is another. Will Klarna’s existing user base find sufficient value to stick with its telecom product?
If the service proves successful, will Klarna extend it to Europe and other markets? And would additional features, like bundled insurance, credit lines, or subscriptions, follow?
Klarna is not alone in venturing beyond payments. The Mexican fintech Rappi has begun offering home delivery, financial services, and telecom bundled together. Apple and Google are integrating financial tools into their ecosystems, while Meta explores financial services through WhatsApp and Instagram. The result? A digital revolution where finance and connectivity converge.
Klarna entering telecom signals the increasing overlap between industries. For consumers, this could mean more streamlined, user-friendly experiences—but also potentially fewer choices as ecosystems grow more dominant.
Klarna’s new mobile plan is more than a novelty—it’s a bold move toward becoming a holistic digital lifestyle brand. By offering telecom services, Klarna can:
But it faces steep competition, skeptical users, and execution challenges. Its success will largely depend on whether users perceive enough added value in having their connectivity tied to their financial management.
If Klarna can deliver a smooth, cost-effective mobile experience—backed by effective AI tools and customer support—it may spark a new wave of super-app thinking in the West, akin to what’s already common in Asia. Alternatively, if execution falls short, its telecom attempt may remain a niche experiment, overshadowed by specialized MVNOs and big carriers.
