Personal Finance News
BNPL Platform Klarna to Launch Mobile Phone Plans in the U.S.
The “buy now, pay later” platform Klarna is readying to launch a new venture: a mobile phone plan.
About Klarna’s Mobile Phone Plans:
Klarna is entering the world of mobile phone service. The company is partnering with Gigs to debut an unlimited phone plan with uncapped data, talk, and texting. While this new plan will debut in the United States in the coming weeks, Klarna intends to launch similar plans in the United Kingdom, Germany, and other countries in the future.
According to Klarna, these new phone plans will offer unlimited 5G data and operate on the AT&T network. The service will also not charge any activation or cancellation fees. Customers will either be able to port over a current number or claim a new one and activate using eSIM. These plans will also be completely managed via the Klarna app.
Upon launch, Klarna’s phone plan will cost $40 a month. A waitlist for the service is now open.
About Gigs:
Gigs is a company that allows any brand to become a Mobile Virtual Network Operator. On their site, the company highlights use cases for FinTechs, travel brands, and many more. In addition to domestic phone plans, Gigs is able to offer international eSIMs, hotspot data, and other products.
What They’re Saying:
Commenting on the upcoming phone plan, Klarna CEO and co-founder Sebastian Siemiatkowski said, “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. Consumers already know and love Klarna’s super smooth services and now, with one tap in the Klarna app, they’ll be up and running with their new phone plan — no hassle, no hidden fees, just great value.
Meanwhile, Gigs CEO and co-founder Hermann Frank said of the partnership, “Klarna’s push into the mobile space marks the beginning of a new era for connectivity. 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.”
Frank added, “Klarna’s unlimited phone plan represents a radically better experience for US consumers, and we’re proud to power it with Gigs’ operating system for mobile services.”
My Thoughts:
First, it’s interesting to see Klarna diversifying during what’s been a trying time for the company. While it was intended to go public in April, those plans were later put on hold amid negative earnings reports. Although this expansion alone seems unlikely to turn things around, it does show that the company is trying.
As for the plan itself, it sounds as though it could be a pretty good deal. However, I come away from this news more interested in Gigs itself. Just as every brand seemed to be launching a debit card a few years ago, I now fully expect that we’ll see more brands introducing their own phone service plans in the months ahead.
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