MTN MoMo South Africa has launched a rent-to-own smartphone service that allows customers to own a 4G or 5G smartphone, from as little as R10 a day, with no credit checks or paperwork required.
The move places the telecom alongside the growing group of fintech-telecom hybrids, such as Vodacom Easy2Own, Pepkor FoneYam, M-Kopa, Rentoza, and Teljoy, also offering rent-to-own models. FoneYam alone has helped over 1.5 million active customers acquire smartphones. The total value of the rent-to-own segment—including smartphones and other electronics—was estimated at around R5.4 billion ($296 million) for 2024. This number is expected to keep growing annually, at about 5.7%.
The launch phase features 4G-enabled Samsung A05, A06, A16, and A26 smartphones, with more brands set to be introduced in August. The A05 and A06 are entry-level to lower mid-range models, focusing on affordability, while the A16 and A26 provide more advanced features such as higher refresh rates, improved cameras, and 5G support.
Customers can access the service on the MTN MoMo App and select the Handset rent-to-own option to apply, paying a small upfront deposit.. Flexible repayment plans—spanning three to twelve months—are available, and once the final installment is completed, the device becomes theirs to own.
“Smartphones are gateways to opportunity, education, and financial inclusion,” said Kagiso Mothibi, CEO, Fintech SA at MTN South Africa. “ By enabling rent-to-own through the MTN MoMo App, we’re placing that gateway into more hands than ever before.”
This new offering follows MTN’s announcement of a R300 million (nearly $17 million) investment to upgrade its network infrastructure across Gauteng. It also complements the recent rollouts of Smartphone For All, a 4G smartphone offering for as little as R99 to over 1.2 million prepaid users, helping them transition away from outdated 2G and 3G devices, and Shesh@ 5G SIM delivery for home internet.
Tandi Kuper, CEO of Airvantage, noted that, “Together with MTN, we are using data science and fintech to democratise access to smartphones. It’s technology with purpose, at scale.”
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