Guide to eSIM technology: definition, benefits, and business impact

Imagine arriving in a new country and instantly connecting to local mobile networks. No need to search for Wi-Fi passwords, buy local SIM cards, or worry about surprise roaming fees. With eSIM technology, staying connected is easy — and for businesses, it’s a game-changer.

eSIMs simplify travel for employees and customers, open new revenue streams, lower operational costs, and position businesses as leaders in digital transformation. This guide explains everything you need to know about eSIMs and how to incorporate them into your business.

What is eSIM technology?

An eSIM (embedded SIM) replaces the need for a physical SIM card. It’s built directly into a device’s hardware and lets users activate mobile plans digitally. This means they can instantly connect to local networks when they arrive at a new destination.

For businesses, eSIMs are more than just a connectivity solution. They can increase revenue, reduce costs, and help you stand out as a forward-thinking brand in your industry.

4 ways eSIMs drive business growth

eSIM technology helps businesses grow because it is scalable and adaptable. As a digital product, eSIMs can easily be added to many businesses, either as an extra service or as a new revenue stream. 

Here are some benefits of using eSIM technology in your business.

1. Create an additional revenue stream 

eSIM technology lets companies offer digital connectivity without the challenges of managing physical SIM cards. Businesses can tap into the needs of customers who are ready to travel and provide services that are valuable to them.  

For example:

• Travel agencies, airlines, and tour operators can sell eSIMs as an add-on, improving customer experience and earning extra income.
• Digital banks can offer eSIMs as a loyalty perk, adding value for clients.
• Mobile network operators (MVNOs) can provide low-cost roaming options to boost customer loyalty.

2. Support sustainability goals

For businesses focused on reducing their environmental impact, eSIM technology provides a way to meet sustainability goals. 

Research shows that physical SIM cards negatively affect the environment. Each year, over 4.35 billion SIM cards are shipped globally, contributing to around 20,000 tons of plastic waste. Yikes.

eSIMs are 100% digital, so they cut waste and reduce your carbon footprint. Plus, customers can reuse eSIM profiles when revisiting locations, further lowering environmental impact.

Adopting eSIM technology is a smart way to align with sustainability goals, appeal to eco-conscious customers, and show corporate responsibility.

3. Enhance your brand appeal and become a market leader

Using eSIM technology shows that a company is committed to innovation and can help establish it as a customer-focused brand. In competitive sectors like travel, fintech, and telecom, this can be a key differentiator. 

McKinsey research suggests companies leading in digital innovation often perform 2-6 times better than their peers. That's just one metric that reinforces the importance of staying ahead of the competition and adopting new technologies.  

In crowded industries, offering seamless connectivity options for travelers can set your business apart, boost customer loyalty, and make your brand more appealing.

4. Reduce roaming costs and keep employees productive abroad

 In addition to revenue opportunities, eSIMs can help businesses save on travel connectivity expenses and keep employees productive while they're abroad.

For example, consider a company that sends five employees to a conference in Brazil for five days.

• Without eSIMs: $300 in roaming costs (5 employees x $12/day each)
• With eSIMs: $45 total (5 employees x $9/week)

Across multiple trips throughout the year, these savings quickly add up, significantly lowering the company’s overall travel expenses.

How to integrate eSIM technology into your current product offering

eSIMs are flexible and easy to integrate. Airalo Partners offers the following partnership solutions:

• API partners: These partners can integrate eSIM technology into their apps or websites using our API, SDK, or WooCommerce tools.
• Reseller partners: Resellers can create their own eSIM store and sell Airalo eSIMs through the Airalo Partner Platform.
• Airalo for Business: Companies can save money on connectivity costs and reduce administrative workload while keeping employees connected abroad.
• Brand partners: Brands can add eSIMs to their product offerings through our co-branding or white label solutions.
• Affiliates: Affiliate partners can create content about eSIM technology and earn money by promoting Airalo’s eSIM plans.

eSIM FAQs

What devices are compatible with eSIM technology?

eSIM technology is compatible with most modern smartphones. Please find the full list of eSIM-compatible devices here. 

How do eSIMs work?

eSIMs are embedded in a mobile device. When customers purchase an eSIM plan from the Airalo marketplace, they can install the eSIM directly from the app, through a QR-Code, or by manually inputting eSIM info. Then, users can activate their plan when they reach their destination. 

👀 Read more.

Can I use multiple eSIM profiles on one device?

Yes, most eSIM-enabled devices allow you to store multiple eSIM profiles. This makes it easy to switch between networks or plans, which is ideal for frequent travelers or multi-region usage.

👀 Read more.

How can businesses start offering eSIMs to their customers?

Airalo Partners offers a range of partnership models to fit every business model and stream. From API integrations to corporate customers, Airalo Partners has a solution designed to support your business growth. 

👀 Learn more about our partnership solutions here.