Mobile Service MTN MoMo Introduces Rent-to-Own Device Program to Enhance Digital Accessibility in South Africa
MTN MoMo South Africa Launches Handset Rent-to-Own Solution
MTN MoMo South Africa has introduced a groundbreaking initiative called the Handset Rent-to-Own solution. This innovative offering aims to democratize access to smartphones and bridge the digital divide in the country [1][2].
Kagiso Mothibi, CEO of Fintech SA at MTN South Africa, emphasized that the Handset Rent-to-Own solution is not just launching another product, but changing the game by enabling rent-to-own through the MTN MoMo App [1]. Tandi Kuper, CEO of Airvantage, added that they are using data science and fintech to make this possible [2].
The Handset Rent-to-Own solution is designed for the unbanked and underserved, allowing users to own a smartphone from as little as R10 a day, with no credit checks or paperwork required [1]. The service uses advanced AI-driven affordability assessments and is powered by MTN's trusted fintech platform in partnership with Airvantage [2].
The process is smart, secure, and tailored to the realities of South Africa's informal and underbanked economy. Users apply through the MTN MoMo app, pay a small deposit, select a repayment plan from 3 to 12 months, and receive the phone immediately—owning it outright after completing repayments [1][2].
Initially, the offering features 4G Samsung smartphones, with more trusted brands set to follow [3]. The aim is to put 4G or 5G smartphones into the hands of millions of South Africans, breaking down barriers to connectivity [3].
The launch of the Handset Rent-to-Own solution follows MTN's recent rollouts of Smartphone For All and Shesh@ 5G SIM Delivery, further cementing MTN's commitment to digital inclusion in South Africa [4].
To apply for the Handset Rent-to-Own solution, users need to download or open the MTN MoMo App. Once approved, customers can choose a flexible payment plan of three, six, nine, or twelve months, after which the device is theirs to own forever [5].
In a nutshell, the program works by lowering cost and complexity hurdles: download the MTN MoMo app, select the rent-to-own option, apply easily, pay a small deposit with daily affordable fees, and own a smartphone without the need for bank accounts or credit histories [1][2][3].
[1] https://www.itweb.co.za/content/MTN-launches-Handset-Rent-to-Own-solution-537734 [2] https://www.itnewsafrica.com/2021/07/mtn-momo-launches-handset-rent-to-own-solution-in-south-africa/ [3] https://www.itnewsafrica.com/2021/07/mtn-launches-handset-rent-to-own-solution-in-south-africa/ [4] https://www.itweb.co.za/content/MTN-launches-Handset-Rent-to-Own-solution-537734 [5] https://www.itweb.co.za/content/MTN-launches-Handset-Rent-to-Own-solution-537734
- The democratization of access to smartphones in South Africa is being facilitated through innovative technological solutions like MTN's Handset Rent-to-Own solution, which leverages fintech and data science to bring 4G and potentially 5G devices to the unbanked and underserved.
- Businesses in the telecoms sector, such as MTN South Africa, are increasingly employing technology to bridge financial and digital gaps, as evidenced by their offerings like the Handset Rent-to-Own solution and Smartphone For All, which prioritize inclusion and affordability.
- The future of education in South Africa may be significantly impacted by initiatives like the Handset Rent-to-Own solution, as widespread access to smartphones can empower students with digital learning resources and promote digital literacy, contributing to overall economic growth.
