Monzo launches mobile service with Virgin Media O2 and 1GLOBAL partnership

Monzo has entered the UK mobile market with the launch of Monzo Mobile, an eSIM-only phone plan service powered by Virgin Media O2 and global connectivity specialist 1GLOBAL. 

The digital bank said the move is designed to give its 14 million personal banking customers greater visibility and control over mobile spending by integrating phone plan management directly into the Monzo app.

Monzo Mobile will offer three flexible plans with no long-term contracts, allowing customers to upgrade or cancel at any time. Users will be able to monitor data usage, roaming and monthly spend from within the banking app, extending Monzo’s strategy of embedding everyday financial services into a single digital platform.

Virgin Media O2 will provide infrastructure and 5G connectivity, while 1GLOBAL will manage international roaming and global network integration across more than 200 destinations.

Monzo said the partnership structure would allow it to offer a single eSIM with both domestic and international connectivity, while avoiding the complexity of building telecoms infrastructure itself.

Duygu Yenidogan-Schmidt, General Manager of Core Banking at Monzo, said: “Monzo Mobile is a natural extension of our mission to make money work for everyone. By bringing mobile connectivity into the Monzo app through a simple eSIM experience, we’re giving customers more visibility and control over another essential part of their everyday spending.”

She added that the partnerships with Virgin Media O2 and 1GLOBAL would help Monzo deliver “a reliable, flexible and high-quality service”.

For Virgin Media O2, the deal strengthens its position in the MVNO market, where it already provides wholesale mobile services to a range of third-party brands.

Paul O’Sullivan, Director of Wholesale Mobile at Virgin Media O2, said: “This partnership underlines the strength of the O2 network and our position as the UK’s trusted host of choice for MVNOs.”

Virgin Media O2 said it is investing £700 million this year to expand and upgrade its mobile network as part of plans to improve UK coverage and reliability.

Meanwhile, 1GLOBAL said the partnership highlighted growing demand for embedded connectivity services among digital-first consumer brands.

Hakan Koç, founder and CEO of 1GLOBAL, said fintech businesses are increasingly using mobile services as “key differentiators and growth drivers”.

Monzo’s move follows similar activity from rival fintech brands, including Revolut, which has also expanded into mobile services. However, the two approaches differ in positioning.

Revolut’s mobile proposition has largely focused on international connectivity and travel-centric data services aimed at its globally mobile customer base, whereas Monzo is positioning its offer as a fully integrated domestic mobile plan designed to sit alongside everyday banking and budgeting tools.

Industry analysts said the entry of fintech firms into telecoms could increase competition in the SIM-only and eSIM sectors, particularly among digitally engaged consumers looking for app-based account management and flexible contracts.

Jez Samuel, mobiles expert at Uswitch said Monzo’s launch would add further momentum to the growing overlap between fintech and telecoms.

He said: “We’re seeing more players enter mobile than ever before, which can only mean more choice for consumers.”

Samuel added that Monzo’s loyalty discount model could appeal to customers, although consumers would still need to compare offers carefully against wider SIM-only deals available in the market.

The service is initially available exclusively as an eSIM product, meaning customers will need compatible devices to sign up.