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Certainly you can buy a handset on a monthly basis, but not from O2 - try Amazon or the manufacturer's shop site.
The tariff component, or Airtime, comes with the handset, or Device Plan, component (up to 36 monthly payments) on phone deals bought from O2, or you can buy a PAYG phone and get rid of the SIM they send with it, paying outright for the handset, @HK4 - https://www.o2.co.uk/shop
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Pop into your local O2 store https://www.o2.co.uk/storelocator
or call sales on 0800 081 0255
It may be possible to get a similar tariff to what you have now or even save money if you buy via uswitch.
Mobile Phone Deals: Compare Contracts in February 2024 - Uswitch
