Klarna, the finance company best known for its “buy now, pay later” (BNPL) service, now wants to be a mobile carrier. The company is rolling out 5G service in the United States, powered by AT&T’s nationwide network.
Klarna’s new unlimited mobile plan will be available inside the existing Klarna app for iPhone and Android, with “no hidden fees, flexible contracts, and a smooth set-up experience.” You can transfer your existing number or get a new one, and activation is handled through eSIM.
The current plan is $40/month with “unlimited 5G data that stays at 5G speeds.” That’s not the worst pricing for MVNO mobile service, but AT&T sells its ownSimply Unlimited Plan through Cricket Wirelessfor the monthly same price with taxes included. There are plenty of other competitors too, likeVerizon’s Visible servicethat has unlimited 5G and 5Mbps hotspot service for $25 per month.
Klarna says it will roll out premium options with international access “later this year,” as well as mobile plans in the United Kingdom, Germany, and other countries. The actual infastructure is operated by Gigs, which alreadypartnered with Nubank in Latin Americaon a similar service. Gigssaysfintech companies can “boost ARPU, increase customer loyalty, and drive revenue growth” by launching their own mobile networks, and apparently Klarna is interested.
Klarna is one of many “buy now, pay later” providers that encourage people to take loans for products and services they can’t afford to buy outright, usually through integrations in popular online stores andApple Pay. Astudyreleased last month revealed 41% of BNPL customers in the United States have paid late fees at least once, up from 34% just a year ago, andKlarna reporteda 17% increase in consumer credit losses (e.g. unpaid loans) in the first quarter of 2025, compared to the same period in 2024. Klarna, Affirm, PayPal, Afterpay, and other companies make itincredibly easyto trap yourself under a mountain of late fees and debt, especially since those companies are not as tightly regulated as regular banks.
There’s no reason to use Klarna’s mobile plan over the countless other MVNO networks, like Mint Mobile, Visible, Cricket Wireless, Metro by T-Mobile, or Ting, Boost Mobile. The price isn’t anything revolutionary, and you’re just handing over more of your digital and financial life to a company that specializes in predatory short-term loans.
