Become a TechRadar Insider
- The banking app Monzo is launching new mobile phone plans
- The three plans will get cheaper the longer you stay with Monzo
- They launch this summer, and you can join the waitlist now
Mobile banking app Monzo is shaking up the UK's mobile phone networks with three new eSim plans that launch 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%. That's a new trick that could prove popular with anyone who's tired of contract price hikes.
So how do those three plans break down? As you can see below, Monzo will be offering an £8 per month plan (with a 10GB data cap), a £12 per month plan (for 30GB of data), and an 'Unlimited' plan for £20 per month. Beyond the data caps, the main 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 on average £2.48 per month over a year, and includes roaming.
But Monzo Mobile's plans are certainly still tempting, 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 within the Monzo app.
The flipside is that you'll need a Monzo current account to join its new mobile network, with the waitlist open now if you head to official Monzo Mobile page.
How good a deal is it?
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'll be a home run just yet.
Duygu Yenidogan-Schmidt, General Manager for Core Banking at Monzo, said that "we've always believed 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. The digital bank Klarna also has a waitlist open for its new unlimited plan.
Jez Samuel, Uswitch mobiles expert, said: "We’re seeing more players enter 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 to stop it rolling out inflation-linked price rises. The banking app told This is Money that there is no "commitment" to imposing price increases "at this stage".
Customers who are already on high-value networks like Giffgaff also won't necessarily be tempted to switch. Over on Reddit, one commentator claimed that the "O2 network is disappointing" and that they're "super shocked that EU roaming is not included across all plans" (you don't get this on the £8 per month Monzo Mobile plan).
Meanwhile, a current Giffgaff customer said they're "definitely not sold" due to the pricing and lack of EU roaming in the base Monzo plan. Still, Monzo users could still see value in tracking their banking and mobile usage in one app, and we'll find out exactly how popular this new player is when it launches this summer.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.
