Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Revolut and N26 Launching Mobile Plans Inside Banking Apps
Fintech Services | May 6, 2025
Image: Freepik
Digital Banks Are Becoming Mobile Carriers and Canada May Be Next
Two of Europe's leading digital banks, Revolut and N26 are now expanding into the telcom sector for continued growth. First it was Revolut on April 30, 2025 who announced they are launching mobile phone plan offerings in the UK and Germany, directly challenging traditional telecommunications network providers. Offering unlimited calls, texts, domestic, and 20GB of EU and US roaming, all managed inside its app without the need for a contract, all for £12.50 per month (introductory offer; UK waitlist; GER waitlist)
See: Revolut Pushes into Commercial Real Estate Lending
Just days later, Bloomberg reported that German neobank N26 also planned to launch a mobile phone service in Germany in May. These are not side pet projects but new product launches that provide key insight into how digital banks plan to fuel growth. It's easy to envision how digital finance platforms that offer banking, payments, and other services like phone plans or even internet can be rolled into a single platform and customer experience. The question for Canada is not whether consumers want more product choice and better pricing, it's whether the country (read: political will) are ready for it or not?
Mobile services are now part of digital banking
Revolut first dipped its toes into mobile connectivity by launching its eSIM product last year which has already become its most popular non-banking feature, with millions of data plans being activated in more than 100 countries. And now, backed by user demand and network partnerships, Revolut is launching a full mobile service. And now, N26 is doing the same. Both digital banks are offering a simple, affordable (flat rate) plans through national mobile networks and bundling everything into their apps.
Canadian consumers are overpaying and underserved
In 2018, the CBC reported that Canadian mobile phone bills were among the highest globally. Even the Canadian Radio-television and Telecommunications Commission (CRTC) regulator has acknowledged concerns about the affordability of telecommunications services in Canada. It's not a new discovery, they've been saying the same thing for years. The Competition Bureau of Canada published a report confirming that Canadians want more competition in the financial sector, especially younger generation who are mobile first and ready for apps that simplify their bills, reduce fees, and improve control.
See: The Crisis Canada and Fintech Can’t Afford to Waste
While the majority of Canadians still rely on a handful of banks and telcoms, Canada's market is still closed to this model. The top five-six banks in Canada control over 90% of all bankable assets, and the top three telcoms serve the majority of mobile customers. Mobile virtual network operator access is limited. Same thing goes for banks. Banking licensing process is long (approx 5 years) and expensive. While these conditions may protect incumbents, it makes it almost impossible for platforms like Revolut or N26 to launch integrated financial or mobile services in Canada.
But a new PM in Ottawa could open the door
Now that Mark Carney has been elected as Canada's new prime minister, there's increasing pressure to improve competition to drive affordability and fix Canada's weak and declining productivity. The convergence of banking and telecommunications checks all boxes. Canada just needs to expedite the modernization of it's digital infrastructure to support long term and sustainable growth from a more competitive sector.
See: BoE Report: Open Banking Boosts Productivity, Competition
Canada's policies must enable innovation for Canada to build a more robust economy and attract investment. The benefits of expanding competition and bundling the fintech-telcom sectors are many including consumer affordability and choice.
- Canada needs to finalize the implementation of open banking to unlock user controlled data and stimulate more competition in Canadian fintech markets.
- Canada needs to expand Mobile Virtual Network Operators (MVNO) access so new players can offer competitive mobile services.
- Canada could pilot fintech-telcom bundles with clear consumer protection rules.
The competition window of opportunity is now
Revolut and N26 are showing that mobile and financial services can be bundled into seamless digital service platforms that offer users more control and lower fees. Canadian consumers want this to happen but past-governments have lacked the political will to act. However, with a new prime minister and economic mandate, there's hope and a window of opportunity that Canada may see increased focus on competition and productivity.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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