Swedish fintech company Klarna has launched an unlimited 5G mobile service in the US, marking a strategic expansion beyond its core “Buy Now, Pay Later” (BNPL) business. The $40 monthly plan includes unlimited data, talk, and text with no activation or cancellation fees.
The service runs on AT&T’s network through partnership with telecom startup Gigs, allowing customers to activate eSIMs and manage their plans entirely through Klarna’s app. This digital-only approach addresses consumer frustration with traditional carrier experiences – Klarna’s research found half of Americans believe switching phone plans is too difficult.
“This is a natural next step in building out our neobank offering,” said Klarna CEO Sebastian Siemiatkowski, who aims to transform the platform into an AI-powered “super app” that consolidates financial services, shopping, and now connectivity.
Klarna plans to expand its mobile service to the UK and Germany later in 2025, following the US launch.
AI Financial Assistant
Siemiatkowski envisions Klarna’s app evolving into a “digital financial assistant” that analyzes user spending to find savings opportunities.
“If we have some information that suggests that you are overpaying for your carrier subscription or your data,” Siemiatkowski told CNBC, Klarna will “offer you both a suggestion of a better price model, but also with a click, implement that and make it a reality.”
This marks Klarna’s second attempt at creating a multi-service platform. The company previously tried adding various service buttons to its app but found this “confusing for the customer,” according to Siemiatkowski. He believes AI technology has now matured enough to deliver a better user experience.
“With AI, you can abstract and adopt the experience much more to the specific user you’re dealing with,” Siemiatkowski said.
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Competitive Landscape
Klarna enters an increasingly crowded Mobile Virtual Network Operator (MVNO) market alongside competitors like Mint Mobile, Visible, and Google Fi. Other fintechs including Revolut and N26 have launched similar services in various markets.
“It’s relatively easy to launch an MVNO… The economics have gotten much better in the last few years,” noted Iliya Rybchin, a mobile industry consultant for BDO USA.
The US MVNO market is estimated at $14.83 billion in 2025 and projected to reach $20.84 billion by 2030, according to Mordor Intelligence.
Strategic Benefits and Challenges
This expansion helps Klarna diversify its revenue streams amid increasing regulatory scrutiny of BNPL services. The company reported a $99 million loss for Q1 2025, citing one-off costs related to depreciation, share-based payments and restructuring.
Klarna’s mobile service leverages its existing 25 million US customer base, potentially reducing the high customer acquisition costs that challenge many telecom providers.
“The U.S. is now our largest market by number of users. It’s a profitable market for us,” Siemiatkowski said.
Klarna paused its IPO plans in April after President Trump announced tariffs on dozens of countries. However, Siemiatkowski maintained that the company’s business strategy remains the same regardless of going public.
“That is just a healthy way to drive liquidity for our shareholders, as well as give the company more ways to fund itself,” he said.
The company is also adjusting its AI strategy after experiencing customer service issues. After using AI to handle 2.3 million customer interactions in 2024 (equivalent to 700 human agents), Klarna has begun reintroducing human support for complex issues, acknowledging that overreliance on AI “may have hurt the overall customer experience.”
Hermann Frank, CEO of Gigs, stated that Klarna’s mobile launch “marks the beginning of a new era for connectivity,” combining financial tools and connectivity for a “radically better experience for US consumers.”
