Digital bank Monzo is set to launch a new mobile phone plan this summer, operating on the Virgin O2 network. The service aims to reward subscribers with a 5 per cent discount on monthly bills each year, potentially accumulating up to 30 per cent in savings over time.
Three Digital SIM Plans
Monzo will offer three digital SIM plans with varying data allowances, priced at £8, £12, and £20 per month. This initiative challenges the traditional mobile model by avoiding mid-contract price rises and is expected to intensify competition within the telecoms sector.
Financial Performance
The announcement follows Monzo's recent report of an £87.3 million pre-tax profit for the year to March, marking a 44 per cent increase. The move into mobile services represents a strategic expansion for the digital bank, which has already overtaken traditional banks to become Britain's favourite.
By leveraging the Virgin O2 network, Monzo aims to provide reliable coverage while offering customers a unique discount structure that rewards loyalty. The annual 5 per cent reduction means that after six years, subscribers could see their bills cut by nearly a third, a significant saving in a market often characterised by complex contracts and hidden fees.
