Klarna Launches $40 Unlimited Mobile Plan in U.S.

Klarna, a Swedish fintech company, has announced the launch of an unlimited mobile plan priced at 40 dollars per month in the United States. This move positions Klarna alongside other financial companies that have ventured into the telecommunications sector, such as Revolut. The plan includes unlimited 5G calls and data, leveraging the platform provided by Gigs, a U.S. mobile services startup. Gigs, backed by Google, collaborates with AT&T, enabling any company to become a Mobile Virtual Network Operator (MVNO) without the need for infrastructure, thus facilitating the sale of mobile services to customers.

Klarna's decision to offer mobile services is part of a broader strategy to diversify its revenue streams. The company, which has over 25 million users in the U.S., has been increasingly focusing on expanding its product offerings in this market. The move comes after Klarna paused its initial public offering (IPO) plans in April. The company's CEO highlighted that the goal is to address everyday problems, and mobile services are a natural extension of their new banking services.

Unlike many global fintech companies that have launched mobile services in other countries before entering the U.S., Klarna plans to start in its largest market and then expand to other regions later this year. This strategy underscores Klarna's confidence in the U.S. market and its potential for growth. The entry of fintech companies into the mobile services sector is not limited to Klarna. Other financial technology firms, including Germany's N26 and Brazil's Nubank, have also started offering mobile services in various countries. This trend is driven by the desire to achieve revenue diversification and tap into new customer segments. Additionally, investors outside the fintech sector have shown interest in the mobile services industry, further validating its potential.

The launch of Klarna's mobile plan is expected to intensify competition in the MVNO market. Analysts predict significant changes in this sector over the next two years, with many companies attempting to establish their own MVNO services. However, increased competition also brings higher risks, and not all MVNO projects may succeed. The U.S. MVNO market is projected to grow, presenting both opportunities and challenges for companies like Klarna as they navigate the competitive landscape.