MTN’s mobile money platform, MoMo, has announced a new “Handset Rent-to-Own” solution, making 4G and 5G smartphones available to prepaid customers on credit without traditional background credit checks. This initiative aims to get millions of South Africans, who still use older feature phones, connected with modern technology.
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The phones will be offered for as little as R10 per day, with no credit checks or paperwork. This new offering follows MTN South Africa’s recent launch of subsidized 4G smartphones for as little as R99.
“Powered by MTN’s trusted fintech platform in partnership with Airvantage, the service uses advanced AI-driven affordability assessments – with no payslip and no credit check history required,” MTN said in a statement. “The process is smart, secure and tailored to the realities of South Africa’s informal and underbanked economy.”
Once approved, customers can choose a flexible payment plan of three, six, nine, or 12 months. After all payments are made, the customer owns the device. The launch phase features Samsung 4G smartphones, with other brands to follow. To get started, users must place an order and pay a small deposit through the MTN MoMo app.
This initiative is part of a broader strategy to migrate customers from older 2G and 3G devices to free up valuable radio frequency spectrum for faster 4G and 5G technologies. MTN South Africa CEO Charles Molapisi noted that about 5 to 6 million of MTN’s customers do not yet have smartphones, with a large portion being loyal, long-standing users who simply cannot afford modern devices.
“You cannot migrate if you still have customers sitting on old technologies like 2G and 3G – and you can’t leave them behind either,” said Molapisi. “So, what do you do? You have to find different funding models to promote financial inclusion and bring them along.” This new rent-to-own model is MTN’s answer to that challenge.
