Smartphones are expensive. Good smartphones even more so, but you already knew that. To combat high purchase and contract prices, MTN MoMo has launched a new initiative — called Handset Rent-to-Own — that gives its prepaid customers the ability to pick up a 4/5G smartphone for “as little as R10 a day*.”
MTN’s doing away with all that credit nonsense
It’s not nearly as simple as MoMo makes it appear at first glance. R10/day adds up to roughly R300/m — more expensive than, say, a Samsung Galaxy A26 on a 36-month contract, but that isn’t Rent-to-Own’s biggest attraction. It’s the ability to pick up one of these devices without a credit check or a payslip required. These rent-to-own devices can be paid off over three, six, nine, or twelve months.
“We’re not just launching another product, we’re changing the game,” says Kagiso Mothibi, CEO: Fintech SA at MTN South Africa. “Smartphones are gateways to opportunity, education, and financial inclusion. By enabling rent-to-own through the MTN MoMo App, we’re placing that gateway into more hands than ever before.”
At launch, MoMo’s totally-not-a-contract Rent-to-Own solution comprises only four smartphones — all of them 4G-enabled and Samsung-branded. There are the Galaxy A05, A06, A16, and A26. MTN reckons this is just the beginning for Rent-to-Own, “with more trusted brands set to follow.”
Read More: MTN confirms it’s funnelling a R380 million investment into its Gauteng network
To get a Rent-to-Own device:
- Download or open the MTN MoMo App
- Select Handset Rent-to-Own
- Apply with a few simple taps
- Pay a small deposit
- Choose your payment plan (3, 6, 9, or 12 months)
- Receive your device
- Own it outright after final payment
*Unfortunately, MTN’s promises of only paying “as little as R10 a month” don’t hold much water under scrutiny. Even taking the cheapest device on offer — the Galaxy A05 at R414/m over a 12-month period– amounts to a figure closer to R13/day, give or take a few microcents. And it’s only up from there.
