UK digital bank Monzo is set to become the latest European fintech to offer customers mobile phone plans.
Monzo is in the "early stages" of building a phone offering, with a spokesperson telling 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.”
The bank would not build its own infrastructure but instead act as a mobile virtual network operator (MVNO), licencing parts of other operators’ networks.
Monzo, which launched in 2015 and has amassed 12 million customers, has hit profitability in recent years but is looking to diversify its revenue streams.
It is not the only fintech to go down the mobile plan route: in June, BNPL giant Klarna teamed up with Telecom-as-a-Service platform Gigs to launch a phone plan in a host of major markets, beginning with the US.
German neobank N26 has partnered Vodafone to offer its customers a plan while Revolut recently invited users in the UK and Germany to join a waitlist for its offering.