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In a bold and somewhat unexpected shift, Klarna — the Swedish fintech company synonymous with “Buy Now, Pay Later” services — is expanding beyond the boundaries of consumer finance. It is launching a mobile phone service in the United States, offering unlimited 5G data, calls, and texts for just $40 per month. The service will run on AT&T’s infrastructure, leveraging their expansive and reliable network.
This move, while surprising to some, aligns with Klarna’s larger ambition: to become a comprehensive digital platform — one that manages not just how users pay, but how they spend, save, and now stay connected.
Klarna’s Entry Into the MVNO Space
To understand what this means for both Klarna and consumers, it helps to look at the model they’re adopting. Klarna will operate as a Mobile Virtual Network Operator (MVNO). MVNOs are companies that provide mobile services without owning the physical wireless infrastructure themselves. Instead, they lease bandwidth from major carriers like AT&T, T-Mobile, or Verizon, and repackage it under their own brand with distinct pricing models and customer experiences.
This model is not new — in fact, it’s increasingly common. Well-known brands like Mint Mobile, Cricket Wireless, Visible, Boost Mobile, and Google Fi all function as MVNOs. These providers have carved out strong market positions by offering affordable plans, no long-term contracts, and easy-to-use apps for managing service.
Klarna joins this landscape with a twist: it’s not entering the telecom world as a telecom brand, but as a fintech platform integrating mobile connectivity into a broader digital lifestyle service.
What Makes Klarna’s Plan Different?
Klarna’s $40 mobile plan is marketed as a no-strings-attached package with unlimited 5G data, voice minutes, and text messaging. It’s entirely digital — there are no physical stores involved, and no SIM cards either. Instead, Klarna relies on eSIM technology, allowing users to activate service almost instantly through its app.
Customers can choose to transfer their existing number or get a new one. Everything is managed from within the Klarna mobile app — a central hub that already handles shopping, payment plans, and order tracking for millions of users. Adding mobile service to the app ecosystem creates a more robust value proposition and furthers Klarna’s goal of becoming indispensable in consumers’ daily lives.
The ease and speed of activation, combined with the Klarna brand’s existing trust in digital services, is what sets this launch apart from other MVNOs on the market.
Why Is a Fintech Company Offering Phone Service?
At first glance, Klarna offering phone plans might seem like a bizarre move. But under the surface, it reveals a strategic shift. Klarna has always been more than just a payment processor — it’s aimed to change how people manage money entirely.
The mobile phone service is part of Klarna’s attempt to diversify revenue, broaden its product portfolio, and become a one-stop solution for consumer spending. This comes at a time when Buy Now, Pay Later (BNPL) products are facing increased regulatory scrutiny in both the U.S. and Europe. If regulations begin to stifle Klarna’s core business, having new income streams from services like telecom could prove invaluable.
Moreover, it gives Klarna new data and new user engagement — customers interacting with the app not just when shopping, but daily as they manage their phone plans.
Klarna’s Fintech Roots — and the BNPL Controversy
Klarna became a household name by popularizing the BNPL model. This service allows shoppers to split their purchases into four equal payments, typically over a span of six weeks, with no interest — as long as they pay on time.
This model has found massive success, especially among younger consumers wary of traditional credit card debt. It’s also been a hit with online retailers, many of whom see higher conversion rates and larger average order values when they offer BNPL options at checkout.
However, the model has raised concerns. A report by the Consumer Financial Protection Bureau (CFPB) in 2024 highlighted troubling patterns among BNPL users. According to the research, people who frequently used BNPL services were more likely to have greater overall debt and experience financial distress.
Meanwhile, a LendingTree study showed that 41% of BNPL users admitted to missing at least one payment in the past year. Critics argue that the BNPL model can normalize compulsive buying and mislead consumers into thinking they’re spending less than they actually are.
Although Klarna and similar companies defend the model as a smart alternative to high-interest credit cards, governments around the world are looking to regulate BNPL more strictly — potentially capping fees, enforcing transparency, and subjecting the services to credit checks.
Interestingly, the Trump administration in the U.S. recently reversed an effort to impose such regulations through the CFPB, opting to delay any immediate action. That gives Klarna some breathing room — but it also underlines the fragility of the BNPL model if political tides shift again.
From BNPL to “Financial Operating System”
In light of these challenges, Klarna is repositioning itself not just as a fintech, but as a “digital financial assistant.” CEO Sebastian Siemiatkowski laid out this vision in a conversation with CNBC, explaining that Klarna wants to go beyond helping people pay — it wants to help them manage and optimize every part of their financial life.
Imagine an app that uses AI to detect when you’re overpaying for services like mobile plans, streaming subscriptions, or insurance. It doesn’t just notify you — it helps you switch to a better deal instantly, with a few taps.
That’s the bigger picture Klarna is pursuing: an automated, intelligent platform that understands your spending and helps you cut costs, stay on budget, and find value in unexpected places — like telecom.
By introducing its own mobile service, Klarna can begin controlling both ends of that optimization loop: identifying overspending on phone bills, and offering its own cheaper alternative.
Klarna’s Strength: A Built-In User Base
One of Klarna’s biggest advantages in entering the MVNO market is its existing audience. Millions of people already use the Klarna app — not just to pay for purchases, but to manage orders, set spending limits, or discover deals.
This means Klarna doesn’t need to start from scratch or convince users to download a new app. It can instantly promote the mobile plan to current customers, integrate onboarding within a familiar interface, and offer incentives like discounts or reward points for signing up.
Compare that to most MVNOs, which must rely on external advertising or promotions to grow their user base. Klarna, by contrast, can cross-sell telecom to its already engaged user pool, potentially slashing customer acquisition costs and driving faster adoption.
Competition and Challenges in the MVNO Market
Of course, the U.S. mobile market is already crowded. MVNOs like Visible, Mint Mobile, Google Fi, and Consumer Cellular are well-established, and each has carved out loyal followings with their own distinct value propositions.
Some focus on pricing; others emphasize customer service, network priority, or features like family plans. Klarna’s entry is relatively simple — one $40 unlimited plan, no physical SIM cards, and integration with a financial app.
Whether this simplicity works in its favor or proves too limiting remains to be seen. Many MVNOs have struggled to maintain long-term customer loyalty, as consumers often chase the best deal month-to-month.
Klarna hopes its ecosystem — financial tools, BNPL, rewards, AI automation — will give people a reason to stick around even when competitors offer slightly cheaper mobile plans.
The Super-App Strategy: Klarna’s Long-Term Game
This telecom move is just one step in Klarna’s broader “super-app” vision — a model popularized in Asia by apps like WeChat, Grab, and GoTo, which combine messaging, shopping, payments, transportation, and more into a single app experience.
In the Western market, no one has fully pulled this off yet. But Klarna may be inching closer. If it can successfully integrate telecom into its fintech platform, and eventually introduce other services like insurance, travel booking, investment tools, or even banking features, Klarna could become the West’s first true financial super-app.
This would represent a massive shift from being a niche payment solution to becoming the central nervous system of consumers’ financial lives.
Final Thoughts: Is This the Future of Fintech?
Klarna’s move into telecom may raise eyebrows today, but it reflects a deeper trend: the blurring lines between financial services, consumer tech, and digital infrastructure. Just as Apple went from making computers to offering credit cards and buy-now-pay-later financing, Klarna is shifting from payments to connectivity.
It’s an ambitious leap — one that could either position Klarna as a global leader in financial lifestyle tech or stretch its brand too far beyond its roots.
But Klarna has a track record of spotting emerging consumer needs and turning them into sleek, digital-first experiences. If its mobile service delivers on value, simplicity, and integration, Klarna might not just compete in the telecom space — it could redefine it.
