Growing Beyond Payments: Klarna Launches US Mobile Service
Klarna has entered the US mobile telecommunications market with an unlimited phone plan that customers can purchase and manage through its existing app.
The Swedish fintech company plans to expand the service to the UK and Germany following the initial US launch.
The move represents Klarna's latest attempt to build a broader neobank offering beyond its core buy now, pay later payment services. The company serves more than 25 million active users in the United States and reports a Net Promoter Score of 81.
Research drives market entry
Klarna's decision to enter mobile services follows research indicating that half of Americans consider switching phone plans too difficult.
The company aims to address this friction by offering plan switching and activation entirely within its app, without requiring phone calls, paperwork or store visits.
The service launches with a single unlimited plan priced at $40 per month. The plan includes unlimited 5G data without throttling, talk and text services, and operates on AT&T's network infrastructure. Customers can transfer existing phone numbers or obtain new ones through instant eSIM activation.
Sebastian Siemiatkowski, CEO and Co-founder of Klarna, says the company has “saved consumers time and money, and reduced financial worry for over 20 years”.
He adds: “With mobile plans we're taking that one step further, as we continue to build our neobank offering.”
Partnership with Gigs provides technical foundation
Klarna's mobile service operates through a partnership with Gigs, which provides the technical infrastructure for mobile virtual network operators.
Gigs describes itself as an operating system for mobile services and has previously worked with other financial services companies entering telecommunications.
The partnership allows Klarna to offer mobile services without building its own network infrastructure or obtaining traditional telecommunications licences.
This model has become increasingly common among fintech companies seeking to expand their service offerings.
Hermann Frank, CEO and Co-founder of Gigs, describes Klarna's entry into mobile as “the beginning of a new era for connectivity”.
He says the service “represents a radically better experience for US consumers” and notes that Gigs is “proud to power it with Gigs' operating system for mobile services”.
Expansion plans target European markets
Klarna plans to introduce premium and international plans later in 2025, alongside geographic expansion to the UK and Germany. The company has not disclosed specific timelines for these launches or pricing details for international markets.
The mobile service launch coincides with increasing competition in the US telecommunications market, where traditional carriers face pressure from mobile virtual network operators and technology companies offering alternative services.
Several fintech companies have explored telecommunications services as a way to increase customer engagement and generate additional revenue streams.
Klarna's mobile plans include no activation or cancellation fees, positioning the service as an alternative to traditional carrier contracts that often include early termination penalties.
The company's existing customer base and app infrastructure provide a distribution advantage over standalone mobile virtual network operators.
The service activation process requires only a few taps within the Klarna app, with customers receiving immediate access to their new mobile service.
This contrasts with traditional carrier activation processes that can require store visits or extended customer service interactions.
Hermann says consumers “can expect a seamlessly integrated mobile experience that bundles premium connectivity with financial tools, all through the apps they already know and love”.
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