- Monzo banking app launches new mobile phone plans
- All three plans will be 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 UK mobile networks with three new eSim plans launching this summer and getting cheaper the longer you stay.
Monzo Mobile will take advantage of 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%. This is a new trick that could prove popular with anyone tired of contract price increases.
So how do those three plans fall apart? As you can see below, Monzo will offer an £8 per month plan (with a 10GB data limit), a £12 per month plan (for 30GB of data) and an “unlimited” plan for £20 per month. Beyond data limits, the main differences between the three are their roaming options.
These are not the cheapest mobile network plans in the UK; For example, Lebara (which uses the Vodafone network) currently has a 10GB monthly renewable contract which costs on average £2.48 per month for a year and includes roaming.
But Monzo Mobile’s plans certainly remain tempting, and the digital bank is hoping to convert some of its 15 million customers with features such as the ability to track their mobile data, roaming and more within the Monzo app.
The flip side is that you’ll need a current Monzo account to join their new mobile network, with the waiting list now open if you head to the 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 will be a success yet.
Duygu Yenidogan-Schmidt, managing director of core banking at Monzo, said “we have 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. The digital bank Klarna also has the waiting list open for its new unlimited plan.
Jez Samuel, mobile expert at Uswitch, said: “We’re seeing more players get on mobile than ever, which can only mean more choice for consumers. Flexible, contract-free plans are attractive, but that flexibility cuts both ways, as Monzo can change the price of its plans at any time.”
While Monzo Mobile’s main feature is its 5% loyalty discount, there’s nothing stopping it from implementing inflation-related price increases. The banking app told This is Money that there is no “commitment” to imposing price increases “at this time.”
Customers already in high-value networks like Giffgaff won’t necessarily be tempted to switch, either. On Reddit, one commenter claimed that “the O2 network is disappointing” and that they are “very surprised that EU roaming is not included in all plans” (you don’t get this on the £8 per month Monzo Mobile plan).
Meanwhile, a current Giffgaff customer said he is “definitely not sold” due to the price and lack of EU roaming on the Monzo basic plan. Still, Monzo users could still see the value of tracking their banking and mobile usage in a single app, and we’ll find out exactly how popular this new player is when it launches this summer.
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