Klarna, the global payments and Buy Now, Pay Later (BNPL) giant, is stepping into the telecom sector with the launch of an unlimited mobile plan in the United States.

Announced on June 18, Klarna revealed that the new offering will debut in the U.S. in the coming weeks, followed by rollouts in the U.K., Germany, and additional markets. The move aligns with Klarna’s broader strategy to evolve its services into a full-fledged neobank experience.

“For over two decades, Klarna has helped consumers save money and reduce financial stress,” said Sebastian Siemiatkowski, Klarna’s CEO and co-founder. “With our mobile plan, we’re simplifying connectivity — no hidden charges, no paperwork, just a seamless, affordable experience through the Klarna app.”

Targeting customer pain points, Klarna cited research indicating that over half of U.S. consumers find switching mobile plans burdensome. With its new service, users can transfer or request a new number and activate the plan directly within the Klarna app — eliminating the need for store visits or customer service calls.

The mobile plan, built in partnership with telecom platform Gigs, will offer unlimited 5G data, calls, and texts for $40 per month, using AT&T’s network infrastructure.

“Klarna is reshaping the future of mobile connectivity by merging telecom with financial services,” said Hermann Frank, Gigs’ CEO and co-founder. “This integration creates a frictionless mobile experience backed by the Klarna ecosystem.”

With this move, Klarna joins a growing list of FinTechs expanding into telecom. Revolut introduced its mobile services earlier this year, while Brazil’s Nubank launched “Nucel” in 2023.

This convergence trend is gaining momentum, as digital banks blur the lines between financial services and telecommunications. According to PYMNTS research, this shift reflects the global integration of mobile devices and financial technologies, with over 4.3 billion smartphone users — and a vast untapped market of 3.4 billion people still to reach.

Want to stay ahead of the curve in personal finance? Dive into more expert-driven insights at Finance Tech News.

News Source: Pymnts.com