Monzo debuts mobile plans that get cheaper every year

Challenger bank Monzo has announced it is entering the UK mobile market, and will offer customers an annual discount on their plans the longer they use the service.

Monzo Mobile will run as a mobile virtual network operator (MVNO) using Virgin Media O2’s O2 network, as well as rely on 1GLOBAL as a partner to ensure coverage when roaming abroad.

Prices start at a competitive £8 per month for 10GB 5G data, and just like similarly-priced rival MVNOs such as Giffgaff, Smarty and Lebara offer, Monzo Mobile plans will be monthly rolling contracts, so customers don’t have to sign up for the long term - but they will be rewarded with 5 percent off their monthly price each year they stay with their mobile plan, with the overall discount topping out at 30 percent.

That means if you sign up to the £8 plan at launch and stick with it for six years, your monthly bill will end up as low as £5.60.

Monzo Mobile will launch “in the summer” according to the firm, with no set date in place, and plans will only be available to Monzo customers. If you are already a Monzo banking customer, you can click on this link on your phone to join the waitlist for the service.

“We’ve always believed your bank should do the hard work for you - now we’re bringing that same thinking to mobile,” said Duygu Yenidogan-Schmidt, General Manager for Core Banking at Monzo.

“Monzo Mobile gives you flexibility, reliable coverage and a simple, transparent experience, while rewarding your loyalty. It’s mobile, done the Monzo way.”

A mobile provider that rewards loyalty with prices decreases goes very against the current grain in the UK mobile market. Though some providers, usually MVNOs, do not raise prices each year, many of the country’s biggest firms such as Vodafone, O2 and EE hike customer bills annually.

Monzo Mobile will offer the £8 10GB starter plan as well as a £12 30GB plan that includes 10GB of monthly Europe roaming data, and an unlimited UK data plan with 25GB of monthly global roaming data for £20 per month.

The firm will ofer tight integration with the Monzo app for iPhone and Android, with plan controls and roaming add-ons.

Unlike many competitors, Monzo Mobile will be an eSIM only product, which means you won’t be able to get a physical SIM card to put into your phone. This is a little annoying if you want to switch phones, but it is relatively easy to transfer an eSIM from device to device when needed. However, not all smartphones have eSIM compatibility built in.

If your phone has eSIM, you can ditch your current provider for Monzo, or opt to run a second number alongside your current one if you want to take advantage of Monzo Mobile’s attractive pricing and perks.

Monzo said it would provide “24/7 in-app customer support from Monzo with real people on hand”, as well as visual voicemail, Wi-Fi calling and hotspotting functionality.