Monzo goes mobile: UK fintech debuts cell service in tie-up with Virgin Media O2
Monzo is set to launch its mobile service this summer in the firm’s latest play at diversifying its income from its traditional digital banking roots.
The London-based fintech has sealed a tie-up with Virgin Media O2 and 1Global to kick off ‘Monzo Mobile’ – a phone plan and e-sim offering.
Virgin will provide the UK mobile network infrastructure, which comes as the firm pumps £700m into plans to expand its network across the country. Meanwhile 1Global will serve as the global network infrastructure powering Monzo Mobile.
The service will allow users to track data, roam and mobile spend within the Monzo app across three different plans.
Duygu Yenidogan-Schmidt, general manager of core banking at Monzo, said the new launch reflected a “natural extension of our mission to make money work for everyone”.
The company confirmed it was exploring plans for mobile contracts last year, which followed Klarna and Revolut both weighing into the market.
Fintechs dial into mobile market
Revolut has stormed ahead with plans across the lifestyle market, spanning its “Stays” booking platform in 2021 and airport lounge passes. The cross-market activity has handed it some of the industry’s most diverse revenue streams, shielding it from any hits in its core services.
Entries into the mobile market come as fintech companies look to galvanise new products and services that provide income less reliant on the volatility of interest rates that helped thrust them into profitability.
Monzo’s profits has held up against the backdrop of declining rates, counter to some of its peers, with interest income actually growing 39 per cent in its latest financial year.
The firm notched a 25 per cent surge in total users to 15.2m in the last year, which paved the way for a 55 per cent surge in deposits, reaching £25.7bn.
It took home £87.3m in pre-tax profit, 44 per cent higher than the £60m scored in 2024. The increase came as revenue stormed 40 per cent higher to £1.7bn.