Monzo to launch mobile service with 5% loyalty discount

The UK digital bank Monzo has announced it will launch a mobile phone service this summer, introducing a plan that reduces a customer's monthly bill by five percent each year as a reward for loyalty. The service, named Monzo Mobile, will be available to the bank's more than 15 million customers and will operate on the Virgin Media O2 network.

Monzo is offering three SIM-only plans priced at £8, £12, and £20 per month, each with varying data allowances and utilizing digital eSIM technology. The company stated the plans are designed to challenge the traditional mobile model by incentivizing long-term commitment. The annual five percent discount can accumulate to a maximum reduction of thirty percent over time. Customers can manage their mobile plan, track data usage, and monitor spending directly within the existing Monzo app. The company emphasized there are no hidden fees or exit charges, allowing customers to upgrade or cancel at any time.

The bank's entry into the telecoms market is expected to intensify competition, particularly alongside other newer entrants like the financial firm Revolut, which began offering a mobile plan earlier this year. Monzo's move represents a...