The news: Klarna will offer unlimited 5G data, talk, and text for $40/month with coverage on AT&T’s network in the US, per a press release, with plans to expand this deal to the UK and Germany soon. 

Klarna users can sign up for the waitlist through the Klarna app.

BNPL goes mobile: Klarna offering mobile phone services is a first for BNPL providers. Competitors like Affirm power financing for Visible by Verizon and Metro by T-Mobile, but no other BNPL firm has stepped into a role as mobile virtual network operator (MVNO).

Klarna’s bottom (phone) line: Klarna wants regular users and reliable, predictable payment volume. Incorporating a business model that has recurring monthly payments bakes in a level of revenue security for the company, if adopted at scale.

Competing with legacy providers: While Klarna’s mobile rates are competitive, entering the phone provider field against giants like Verizon and AT&T is going to be an uphill battle.