Monzo is preparing to take its biggest step outside banking with a new mobile service aimed at UK customers who want simpler phone bills, flexible contracts and rewards for staying longer. The digital bank will launch Monzo Mobile this summer, with SIM-only plans starting from £8 a month.

The launch gives Monzo a new place in the daily lives of its customers. Instead of only handling spending, saving and subscriptions, the app will also let users manage a mobile plan from the same place they already check their bank balance.

Monzo Mobile will run on the Virgin Media O2 network, making it a mobile virtual network operator rather than a company building its own phone masts. That puts it in the same wider market as brands such as Giffgaff, Tesco Mobile and Sky Mobile, which also use larger network infrastructure.

The headline feature is the loyalty discount. Monzo says customers will get 5% off their monthly bill every year, with the saving rising over time to a maximum of 30%. That is a direct challenge to a telecom market where long-term customers often feel they pay more, not less, after promotional deals end.

What Monzo Mobile Will Offer

Monzo has confirmed three eSIM-only plans. The cheapest option costs £8 a month and includes 10GB of UK data. A second plan costs £12 a month with 30GB of UK data and 10GB of Europe roaming. The top plan costs £20 a month and includes unlimited UK data plus 26GB of global roaming data.

All plans are expected to include Wi-Fi calling, visual voicemail and hotspot support. Customers will be able to track data use, payments, roaming and mobile spending inside the Monzo app. Support will also be handled through Monzo’s in-app service, with the company saying real people will be available around the clock.

The service will be eSIM only, so customers will need a compatible phone and will not receive a physical SIM card. That may suit users who are comfortable managing services digitally, but it could limit appeal for people with older handsets or those who prefer a traditional SIM.

Monzo is also avoiding long tie-ins. The plans will run as monthly rolling contracts, meaning customers can cancel or switch without paying an exit fee. Data will be capped rather than charged on a pay-per-use basis, which should make bills easier to predict.

The timing matters because UK mobile and broadband pricing has been under pressure from regulators. Ofcom introduced new rules from January 2025 banning inflation-linked and percentage-based price rise terms in new phone, broadband and pay-TV contracts. Providers must now show future increases clearly in pounds and pence before a customer signs up.

That does not mean Monzo has promised prices will never rise. The bank has not fully ruled out future price increases, which is important for customers to understand before joining. Its main difference is the yearly loyalty discount, not a permanent price freeze.

Monzo’s pricing is competitive, but not always the cheapest. Some smaller mobile providers already offer more data for less money, and comparison shoppers may find lower monthly deals elsewhere. Monzo’s advantage is likely to be convenience: one app for banking, phone payments, roaming controls and customer support.

The move also increases competition between fintech companies. Revolut has already entered the UK mobile space with a Vodafone-based plan, while other digital finance brands have looked at telecom services as a way to build deeper customer relationships.

For Monzo, the launch comes after a strong year. The bank recently reported pre-tax profit of £87.3 million, up 44% from the previous year, while total revenue rose to £1.7 billion. Its customer base has grown to more than 15 million, and deposits have climbed above £25 billion.

That scale gives Monzo a ready audience for its phone plans. If even a small share of its banking customers add mobile, the company could create a new recurring revenue stream while making the app more central to everyday spending.

Monzo users already rely heavily on the app for daily financial activity. Earlier service disruption showed how important access can be when banking is fully digital. Swikblog previously covered that incident here: Monzo App Down as Thousands of UK Customers Locked Out.

Monzo Mobile is unlikely to win only on price, but it could stand out by making phone plans feel easier to manage. For customers tired of confusing contracts, exit charges and unclear annual increases, the promise of flexible plans and bills that fall with loyalty may be enough to make them look twice.

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