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Klarna to Launch $40/Month Unlimited 5G Mobile Plan in U.S. as It Expands Telecom Offerings

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Swedish fintech Klarna announced on Wednesday its entry into the U.S. mobile services market with a $40 per month unlimited mobile plan offering unlimited 5G calls and data. The move marks Klarna’s effort to diversify beyond financial services and follow the trend of fintech companies entering the telecom space, alongside competitors like British firm Revolut.

Klarna will provide its mobile plan using the platform of U.S. startup Gigs, which operates as a mobile virtual network operator (MVNO) platform in partnership with AT&T. This enables Klarna to offer mobile services without owning network infrastructure.

With over 25 million U.S. users, Klarna views the mobile plan as a natural extension of its neobank ambitions. CEO Sebastian Siemiatkowski told Reuters that the company’s goal is to solve everyday problems, and mobile fits into this strategy.

Unlike most fintechs that launch mobile services in other countries before entering the U.S., Klarna is starting directly in its largest market. The company plans to expand the mobile offering to the UK, Germany, and other countries later this year.

Industry analysts predict significant disruption in the MVNO market over the next two years as more enterprises launch their own mobile services, though increased competition also brings higher risks of failure. The U.S. MVNO market is expected to grow from $14.83 billion in 2025 to $20.84 billion by 2030, according to Mordor Intelligence.

The fintech sector is increasingly seeing telecom services as a growth area, with other fintech firms such as Germany’s N26 and Brazil’s Nubank already offering mobile plans in various countries. Even outside the fintech world, investors like actor Ryan Reynolds and businesses linked to former U.S. President Donald Trump have entered the MVNO market.

Trump Mobile Pulls Coverage Map After ‘Gulf of Mexico’ Label Draws Attention

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Just hours after its launch on Monday, Trump Mobile removed its website’s coverage map following online criticism over the inclusion of the label “Gulf of Mexico” — a term President Donald Trump had controversially renamed by executive order to the “Gulf of America” during his second term.

The map, which had been featured prominently on the Trump Mobile website to showcase network coverage, used T-Mobile’s data, according to a review of the site’s source code by Reuters. T-Mobile’s map retains the internationally recognized term “Gulf of Mexico,” which sparked backlash from some Trump supporters and ridicule across social media platforms.

This incident underscores ongoing tensions around Trump’s executive order, which sought to officially rename the Gulf of Mexico — a change that has been rejected by the international community and ignored by many U.S. media outlets, including the Associated Press, which Trump subsequently barred from certain White House events, prompting a legal challenge.

Trump Mobile: Political Branding Meets Mobile Telecom

Trump Mobile, part of a licensing deal with the Trump Organization, is the latest venture aiming to monetize the political and cultural reach of Donald Trump. The service is powered by Liberty Mobile Wireless, a Florida-based MVNO (mobile virtual network operator) that leases bandwidth from major providers — in this case, T-Mobile.

Despite its launch fanfare, the coverage map issue has exposed a contradiction between the “America First” branding and reliance on external telecom infrastructure that does not reflect the Trump administration’s naming conventions. As of Tuesday morning, the coverage map page returned a “not found” error, and the Trump Organization has not commented on the removal.

Additional Controversies

  • The venture had previously faced skepticism over its “Made in America” smartphone claims, as details about the phone’s manufacturing origin remain vague.

  • The smartphone, priced at $499, has not identified a U.S. manufacturer, a challenge given the country’s limited domestic production capacity in mobile hardware.

Trump Organization Launches ‘Trump Mobile’ Smartphone and Wireless Service

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The Trump Organization has unveiled a new mobile venture called Trump Mobile, featuring a $499 smartphone and a wireless service tailored to appeal to conservative consumers. Launched Monday, the service emphasizes Made-in-America hardware and U.S.-based customer support, and is positioned as a political and economic alternative to traditional telecom providers.

This move expands the Trump brand’s footprint beyond real estate and hospitality into the telecom industry, following earlier ventures into digital media, cryptocurrency, and the Truth Social platform.

However, analysts and experts have raised significant concerns over the regulatory implications and market dynamics of such a launch—particularly with a sitting U.S. president directly connected to a regulated commercial offering.

Industry Concerns and Analyst Reactions:

  • Barclays Equity Research called the venture “unprecedented,” highlighting a lack of clarity on which MVNO (mobile virtual network operator) agreement is supporting the Trump Mobile network. The report noted this could put telecom providers like Verizon (VZ) and AT&T in a politically sensitive position, especially amid ongoing deal reviews.

  • Gil Luria of D.A. Davidson viewed the move as another attempt to capitalize on Trump’s popularity, citing parallels with other Trump-branded ventures.

  • Harvard Law Professor Lawrence Lessig argued this further proves Trump sees the presidency as a tool for personal financial gain, echoing wider concerns about conflicts of interest.

  • Paolo Pescatore, telecom analyst at PP Foresight, warned the lack of clarity on backend partnerships and commercial terms will invite scrutiny. “The devil is in the detail,” he said.

  • Zacks Investment’s Brian Mulberry noted that the price point of the Trump Mobile device could apply competitive pressure on Apple and Samsung, offering comparable utility at a much lower price. “Competition is good for consumers,” he added.

  • Still, David Wagner of Aptus Capital Advisors remained skeptical about its long-term impact, citing industry “stickiness” and political polarization as hurdles to scale.

As of now, no major telecom provider has publicly acknowledged an agreement with Trump Mobile. The Trump Organization claims the service is intended to protect “freedom of communication” for its consumer base, but many are watching closely to see how the regulatory and commercial aspects unfold.