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Faye, a fully digital travel assistance and insurance provider, has launched eSIM plans through its mobile app. The plans are made possible through a partnership with Gigs. Gigs touts itself as a "telecom-as-a-service" platform that enables brands to quickly launch their own customized wireless plans through the Gigs API and software stack. Gigs recently raised $73 million in Series B funding to scale its operations and expand its global reach, with partnerships including AT&T in the U.S. and Vodafone in the UK.
This partnership makes Faye the first U.S.-based travel insurance platform to integrate an eSIM solution directly into its app. The service is designed to offer travelers seamless mobile connectivity across over 190 countries.
Customized Connectivity for Travelers
Through the Faye app, users can select from three recommended travel eSIM packages tailored to their destination and trip duration. These packages offer data allotments ranging from 1GB to 20GB, though pricing details have not yet been disclosed.
Faye's plan terms and conditions have some notable restrictions:
- Region-Specific Activation: eSIMs can only be purchased for the travel destinations specified in a customer’s insurance policy.
- Single Region Use: While the eSIM works across multiple regions, if a travel insurance policy covers multiple regions, the purchase of an eSIM will not be supported.
- Non-Refundable: Once activated, eSIM purchases are non-refundable
Despite these limitations, the integration of eSIM technology aligns with a growing consumer demand for cost-effective, flexible connectivity options during international travel. According to Doron Samish, VP of Product at Faye Insurance, the company is already seeing significant demand for the travel eSIM. Samish stated: "We’re seeing significant adoption from travelers already, who can now enjoy high-speed data from the moment they land, whether traveling across Europe, Latin America or Asia.”
The Growing Appeal of Travel eSIMs
Faye’s move into travel eSIMs taps into a rapidly growing market. A 2024 study by Juniper Research highlights the cost savings for travelers using eSIMs compared to traditional roaming. While mobile subscribers typically spend an average of $8.57 per GB of data while roaming, travel eSIM users spend just $5.50 per GB—a significant difference for frequent travelers.
The study predicts explosive growth in travel eSIM adoption, with usage expected to increase by 440% over the next five years. By 2028, consumers are projected to spend $8.7 billion on travel SIMs and eSIMs, compared to $1.7 billion in 2024. This surge in adoption is also anticipated to cost traditional mobile operators $3.9 billion in lost roaming revenue.
Faye’s partnership with Gigs highlights the ease that non-telecom brands can leverage telecom-as-a-service platforms to create customized and niche specific wireless eSIM plans. This could help to reshape the competitive landscape for MVNOs and traditional operators alike, especially as eSIM adoption continues to accelerate. In 2023, BestMVNO reported that Gigs helped Zolve, a neobank for immigrants to the USA, launch its own mobile plans.
For MVNOs, this presents both a challenge and an opportunity. As more non-traditional brands like Faye enter the market, MVNOs will need to get creative to remain relevant. At the same time, the booming travel SIM/eSIM market offers an avenue for growth and innovation.