- Banking app Monzo launches new mobile phone plans
- The three plans get cheaper the longer you stay with Monzo
- They launch this summer and you can join the waiting list now
Mobile banking app Monzo has announced it’s shaking up the UK’s mobile network with three new eSim plans launching this summer – and they get cheaper the longer you stay.
Monzo Mobile will piggyback on the Virgin Media O2 network, and the banking app says it will reward loyalty by reducing your monthly bills by 5% each year, up to a total discount of 30%. It’s a new trick that could prove popular with anyone fed up with contract price increases.
So how do the three plans break down? As you can see below, Monzo offers an £8 p/month plan (with a 10GB data cap), a 12GB p/month (for 30GB of data) and an ‘unlimited’ plan at £20 p/month. Beyond the data caps, the biggest differences between the three are their roaming options.
These aren’t the absolute cheapest mobile network plans in the UK – for example, Lebara (which uses the Vodafone network) currently has a 10GB monthly rolling contract that costs an average of £2.48p/month over a year and includes roaming.
But Monzo Mobile’s plans are certainly still enticing, and the digital bank will be hoping to convert some of its 15 million customers with features like the ability to track your mobile data, roaming and more in the Monzo app.
The downside is that you’ll need a Monzo current account for its new mobile network, with the waitlist open now if you head over to the official Monzo Mobile site.
How good of a deal is that?
The launch of Monzo Mobile is certainly a smart move for the digital bank, which has strong brand recognition in the UK – but not everyone is convinced it will be a home run just yet.
Duygu Yenidogan-Schmidt, General Manager of Core Banking at Monzo, said that “we’ve always believed that your bank should do the hard work for you” and that the new network is “mobile, done the Monzo way.”
However, Monzo isn’t the first new mobile player we’ve seen recently. Earlier this year, Revolut launched a mobile plan that gives you a free NordVPN subscription for all plans. Digital bank Klarna also has a waiting list open for its new unlimited plan.
Jez Samuel, Uswitch mobile expert, said: “We’re seeing more players getting into mobile than ever before, which can only mean more choice for consumers. Flexible no-contract plans are appealing, but that flexibility cuts both ways as Monzo can change the price of its plans at any time.”
While Monzo Mobile’s headline feature is its 5% loyalty discount, there’s nothing stopping it from rolling out inflation-linked price increases. The banking app told This is Money there is no “obligation” to do them “at this stage”.
Customers who are already on high-value networks like Giffgaff aren’t necessarily tempted to switch either. On Reddit, one commenter claimed that “the O2 network is disappointing” and that they are “super shocked that EU roaming isn’t included across all plans” (you don’t get that on the £8p/month Monzo Mobile plan).
Meanwhile, a current Giffgaff customer said they are “definitely not sold” on the pricing and lack of EU roaming in the Monzo base. Still, Monzo users could still see the value in tracking their banking and mobile usage in one app, and we’ll find out just how popular this new player is when it launches this summer.
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