Monzo launches mobile phone plan with discounts for loyal users

The digital bank Monzo, which recently announced its entry into Spain, is launching a phone plan in the UK that gets cheaper the longer a customer stays: no exit fees, no mid-contract surprises, and a 5% annual discount that compounds up to 30% over time. 

The bank is launching with monthly rolling plans, rather than fixed-term contracts. Managed entirely in the Monzo app, the mobile plan comes with 5G, more than 99% UK coverage and unlimited calls and texts, according to Finextra.

The bank is also introducing a loyalty discount that reduces price over time. Customers can get 5% off their monthly bill each year, resulting in a discount of up to 30% over time.

Customers of the bank can join a waiting list for the mobile service that is built on the Virgin O2 network and will be rolled out in the summer. It is offering three plans using a digital sim and with varying data allowances, costing £8, £12, and £20 a month.

Monzo’s entry to the market is set to intensify competition among phone providers which are already being challenged by newer players such as Revolut and Klarna. The bank, which has more than 15 million customers, said its phone plan challenges the traditional mobile model by rewarding, rather than penalising, long-term loyalty.