Klarna, the global buy-now-pay-later (BNPL) financing service, is making a foray into mobile phone offerings from its digital banking roots. In collaboration with Gigs, a mobile OS provider that links tech firms to mobile revenue opportunities, the Swedish firm will now enable users to sign up for and pay for a 5G monthly phone service directly within its BNPL application. AT&T provides coverage, and users can transfer their existing phone numbers without incurring an activation fee. Plans begin at $40 per month.
Gigs offers comprehensive support for mobile virtual network operators (MVNOs), delivering integrated end-to-end services which encompass premium connectivity, hosted checkout, billing, subscription management, analytics, and AI-driven customer support, according to the company.
“Klarna is ideally situated to disrupt the telecom sector by providing plans that come without any hidden costs, flexible agreements, and an effortless setup process,” the fintech firm announced in a press release. “Consumers are already familiar with and appreciate Klarna’s exceptionally seamless services, and now, with a single tap in the Klarna app, they will be activated with their new phone plan — hassle-free, with no hidden fees, just excellent value,” remarked Klarna CEO Sebastian Siemiatkowski.
Siemiatkowski is utilizing Klarna’s popularity to transform digital neobanking and has been a strong proponent for early investments in cutting-edge technology, including generative AI. In 2024, the co-founder indicated that the firm would be considerably reducing its workforce in favor of AI for customer service and marketing roles — Klarna later revisited this strategy, even as Siemiatkowski addressed employees using an AI avatar. Meanwhile, NBC reported that Klarna’s borrowers are increasingly struggling to keep up with payments and depending on the platform to fund everyday purchases due to rising national debt issues.
Klarna’s mobile service will debut in the U.S. over the next few weeks, with plans to extend internationally to the United Kingdom and Germany shortly thereafter. Prospective customers can sign up for the waitlist now.