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Monzo is laying the groundwork to become a mobile operator, with plans to offer customers phone contracts under its own brand — the latest sign that Europe’s top digital banks are broadening into everyday services beyond finance.
The UK challenger said it is still in the “early stages” of development but confirmed it would run as a mobile virtual network operator (MVNO), leasing capacity from established carriers rather than building infrastructure itself. A spokesperson told the Financial Times: “When we heard from our customers that mobile contracts can be a pain point, we set out to explore how we could do this the Monzo way.”
Founded in 2015, Monzo has grown to 12 million customers and recently turned profitable, with annual revenue topping £1bn. After cementing its position in UK banking, the company is seeking fresh sources of recurring income to compete with peers such as Revolut, N26 and Klarna, all of which have already dipped into telecoms.
The attraction is clear as phone contracts generate predictable subscription revenue and can deepen customer loyalty. Monzo already bundles phone insurance in its paid Premium tier. Adding mobile plans would allow customers to manage banking, insurance, and telecom needs in one app.
The move follows a broader trend among Europe’s fintechs. In June, Klarna launched mobile plans in the U.S. through a tie-up with Telecom-as-a-Service provider Gigs, starting with AT&T’s network. N26 partnered Vodafone earlier this year to roll out eSIM-based 5G plans in Germany, while Revolut opened a waitlist in the UK and Germany for its own service.
Monzo’s advantage lies in its deep UK penetration. While MVNOs already represent nearly a fifth of UK mobile subscriptions — through brands such as Tesco Mobile, Giffgaff and VOXI — Monzo could differentiate by integrating telecom controls directly into its banking app, handling top-ups, roaming caps and billing alongside everyday finance.
Challenges remain. Telecom customer service and regulatory compliance are new territory for a bank. Ofcom rules on number portability, emergency access and switching could stretch Monzo’s support infrastructure, and wholesale pricing from host networks will determine whether it competes on cost or convenience.
Still, combining financial services with essential utilities plays into Monzo’s long-term ambition to be a “super app” for daily money management. Rivals’ forays show there is appetite for simple, app-based mobile contracts — and fintechs see it as one more way to keep customers inside their ecosystems.
Monzo has not set a launch date, but with Klarna, N26 and Revolut already moving, the race to stitch telecom into Europe’s fintech super apps is heating up.
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