Fintech Klarna to launch $40 per month mobile plan in US
STOCKHOLM :Swedish fintech Klarna on Wednesday said it would launch an unlimited mobile plan in the U.S., joining other finance companies moving into the telecoms business, including British rival Revolut.
A number of fintechs, including Germany's N26 and Brazil's Nubank, have started offering mobile services in various countries as they seek to diversify their revenues.
Other investors outside the fintech arena have also put money into the mobile services business such as actor Ryan Reynolds and on Monday U.S. President Donald Trump's family business also licensed its name to launch a mobile service.
Klarna's mobile plan, which includes unlimited 5G calls and data for $40 per month, will use the platform provided by U.S. mobile services startup Gigs.
Google-backed Gigs, which as a partnership with AT&T, makes it easier for any company to become a mobile virtual network operator (MVNO) and sell mobile services to customers without owning the infrastructure that provides them.
Klarna, which paused its plans for an initial public offering in April, has more than 25 million users in the U.S. and the fintech is increasingly choosing the country to launch new products.
"Our ambition has always been to solve everyday problems ... mobile is a natural next step in building out our neobank offering," Klarna CEO Sebastian Siemiatkowski told Reuters.
Most global fintechs have started a mobile service in other countries before entering the U.S., but Klarna plans to start in the U.S., its largest market, and roll out in the UK, Germany and other markets later this year.
"There will be significant disruption to the MVNO market over the next two years, as enterprises try their hand at launching their own MVNO service," Juniper Research analyst Alex Webb said.
"However, increased competition brings increased risk, so not all MVNO projects are likely to be successful."
U.S. MVNO market size is estimated at $14.83 billion in 2025, and is expected to reach $20.84 billion by 2030, according to research firm Mordor Intelligence.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
23 minutes ago
- CNA
Texas Instruments plans $60 billion US investment under Trump push
WASHINGTON :Texas Instruments said on Wednesday it will spend more than $60 billion to expand its U.S. manufacturing footprint, the latest chipmaker to ramp up domestic production amid pressure from the Trump administration to reshore the semiconductor supply chain. In December, the Biden administration finalized a $1.61 billion government subsidy for Texas Instruments to support construction of three new facilities after the company announced plans to invest at least $18 billion under the $52.7 billion CHIPS and Science bill. The company said on Wednesday the $60 billion will be used to build or expand seven chip-making facilities at three sites in Texas and Utah, including two new facilities in Sherman, Texas, and will create 60,000 jobs, calling it the "largest investment in foundational semiconductor manufacturing in U.S. history." In August 2024, the company said it could build seven chip-building facilities and spend up to $40 billion on its Sherman, Texas operations and $21 billion on Utah and other Texas plants. Texas Instruments has been building facilities in Texas and one in Utah as part of efforts to boost in-house manufacturing and stave off rising competition from Chinese analog chipmakers. The company did not give a precise timeline for the investment, which includes up to $46 billion in Texas and about $15 billion in Utah. Texas Instruments said its long-term CapEx plan is unchanged. Unlike AI chip firms Nvidia and AMD, TI makes analog or foundational chips used in everyday devices such as smartphones, cars and medical devices, giving it a large client base that includes Apple, SpaceX and Ford Motor. The spending plan follows similar announcements from others in the semiconductor industry, including Micron, which said last week that it will expand its U.S. investment by $30 billion, taking its planned spending to $200 billion. Analysts have said they see the spending plans as overtures to U.S. President Donald Trump, who has repeatedly threatened to kill the $52.7 billion 2022 CHIPS and Science Act and warned of potential new tariffs on semiconductor imports. Commerce Secretary Howard Lutnick said on Wednesday the Texas Instruments investment will boost "foundational semiconductors that go into the electronics that people use every day. Our partnership with TI will support U.S. chip manufacturing for decades to come." Like other companies unveiling such spending commitments, TI's announcement includes funds already allocated to facilities that are either under construction or ramping up.
CNA
3 hours ago
- CNA
Circle surges as US Senate clears path for stablecoin regulation
Shares of Circle Internet jumped 16 per cent in morning trading on Wednesday after the U.S. Senate approved a milestone stablecoin bill, fueling hopes for broader adoption of what was once a niche corner of the crypto sector. A rare show of bipartisan support marks a turning point in the fractured debate over crypto oversight, and a breakthrough for a sector long stuck in regulatory limbo. Circle, the issuer of the second-largest stablecoin by market value, went public earlier this month in a blowout debut on the New York Stock Exchange. Its shares were last at $173.60, versus IPO price of $31. The company's flagship USDC stablecoin has a market value of around $61.4 billion, according to data from CoinGecko. The tokens have gained traction for offering crypto's convenience without its volatility. Pegged to currencies like the U.S. dollar, they aim to hold a stable value backed by reserves. The Republican-controlled House of Representatives must pass its version of the bill, known as the GENIUS Act, before it heads to President Donald Trump for approval. "Once passed into a law (likely the end of summer), we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet," analysts at brokerage Bernstein said. Proponents say by setting clearer rules for issuing and managing dollar-pegged tokens, the bill could bring greater legitimacy to the sector. Several high-profile corporates are also reportedly exploring launching their own stablecoins. If signed into law, stablecoins will have to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to publicly disclose the composition of their reserves on a monthly basis. "Stablecoin adoption could also serve as a strong tailwind for major cryptocurrencies like bitcoin," analysts at brokerage KBW said. Stablecoins account for roughly $256 billion of the crypto sector's total $3.3 trillion market value, according to CoinMarketCap data.
CNA
3 hours ago
- CNA
Stocks tick up, oil falls as uncertainty reigns on Middle East, Fed
(Corrects typographical error in headline) By Isla Binnie and Naomi Rovnick NEW YORK/LONDON :Wall Street indexes posted modest gains and oil prices dipped on Wednesday as investors weighed the impacts of a Middle East conflict and a U.S. rate decision on a global economy already grappling with uncertainty stemming from U.S. economic policy. Brent crude oil prices initially extended their recent rise as the Israel-Iran air war entered its sixth day, feeding concerns over global oil supply, before falling 1.52 per cent to $75.31 per barrel after U.S. President Donald Trump said Iran wanted to negotiate. Stock buyers made cautious inroads in early trading on Wall Street, giving a 0.50 per cent push to both the Dow Jones Industrial Average and the S&P 500 and a 0.56 per cent boost to the Nasdaq Composite. While geopolitics were the biggest immediate concern, other lingering doubts included a squabble over President Trump's tax bill, said Chris Maxey, Managing Director and Chief Market Strategist at New York-based Wealthspire. "Uncertainty began at the start of the year, and it felt like it just kept growing ... It's uncertain about what's coming next with respect to the (U.S.) tax package, what's going to happen with the Federal Reserve, what's going to happen in the Middle East," he said. "People are trying to digest all of this information without a huge amount of clarity," Maxey added. Trump declined to answer questions on whether the U.S. was planning to strike Iran or its nuclear facilities, saying: "Nobody knows what I am going to do." WATCH THE FED FOR CLUES The Fed is expected to keep its main funds rate steady on Wednesday in the 4.25 per cent-4.50 per cent range it has held since December. It is expected to issue projections, known as a dot plot, that signal it will not move decisively for months to come. Signs of fragility in the U.S. economy make for a challenging backdrop. U.S. retail sales fell by a larger-than-expected 0.9 per cent in May, data showed on Tuesday, the biggest drop in four months, while labour market indicators are showing weakness. "Markets are going to be closely watching the Fed's quarterly dot plot for clues on how and when the central bank will resume its cutting cycle," Insight Investment co-head of global rates Harvey Bradley said. "As tensions in the Middle East have the potential to threaten the inflation picture further, it cannot be ruled out that projections adjust to reflect just one rate cut this year,' he added. U.S. Treasury yields fell again on Wednesday, continuing a slide on Tuesday prompted by investors calculating that geopolitical risks abroad were greater than the chances the U.S. debt pile becomes unmanageable. The benchmark 10-year note was last yielding 2.6 basis points less, at 4.365 per cent, from 4.391 per cent late on Tuesday. The two-year yield, which is more sensitive to changes in expectations for Fed interest rates, fell 1.1 basis points to 3.939 per cent, from 3.95 per cent late on Tuesday.
