Skip to content
Finance — Personal-finance — Unveil the Latest Gadgets

MTN MoMo enters the South African rental market for smartphones

Affordable daily smartphone rental service initiated by MTN MoMo South Africa, starting at R10 per day, bypassing credit checks and eliminating need for documentation.

,   and  Administrator
2 min read
MTN's MoMo service enters the South African market for renting smartphones on an installment basis.
MTN's MoMo service enters the South African market for renting smartphones on an installment basis.

MTN MoMo enters the South African rental market for smartphones

MTN MoMo South Africa Introduces Rent-to-Own Smartphone Service

The rent-to-own smartphone segment in South Africa is experiencing significant growth, with an estimated value of around R5.4 billion ($296 million) in 2024 [1]. This market is projected to grow at an annual rate of approximately 5.7% [1].

One of the key players in this segment is MTN MoMo, a subsidiary of MTN South Africa. They have recently launched a service that allows customers to own 4G or 5G smartphones for as little as R10 ($0.55) per day, with no credit checks and flexible repayment plans ranging from three to twelve months [1][2][3].

The growth in this market is driven by factors such as rising smartphone penetration needs, government plans to phase out 2G/3G networks by 2027, affordability challenges for many consumers, and the growing adoption of fintech-telecom hybrid services that facilitate easier access to smartphones for the unbanked or underserved population [3].

Other providers in this segment include Vodacom Easy2Own, Pepkor FoneYam, and various other companies.

MTN MoMo's service is available through the MTN MoMo App, where customers can select the Handset rent-to-own option to apply, paying a small upfront deposit. The launch phase features 4G-enabled Samsung A05, A06, A16, and A26 smartphones [2].

Kagiso Mothibi, CEO of Fintech SA at MTN South Africa, stated, "By enabling rent-to-own through the MTN MoMo App, we're placing that gateway into more hands than ever before." Tandi Kuper, CEO of Airvantage, added that MTN and Airvantage are using data science and fintech to democratize access to smartphones [3].

In addition to this, MTN South Africa has made a R300 million investment to upgrade its network infrastructure across Gauteng [4].

Key Points

  • The rent-to-own smartphone segment in South Africa is valued at approximately R5.4 billion ($296 million) in 2024.
  • The segment is growing at an estimated annual growth rate of about 5.7%.
  • Main providers include MTN MoMo, Vodacom Easy2Own, FoneYam, and others.
  • The price entry point for the service is from R10 ($0.55) per day.
  • The service offers 4G and 5G smartphones and flexible repayment plans ranging from three to twelve months, with no credit checks.
  • MTN South Africa has made a R300 million investment to upgrade its network infrastructure across Gauteng.

[1] Rent-to-own smartphone segment in South Africa [2] MTN MoMo launches rent-to-own smartphone service [3] Democratizing access to smartphones through data science and fintech [4] MTN invests R300 million in network infrastructure upgrade

Read also:

Related

Latest