MTN introduces rent-to-own smartphones in SA

Published by Trustsdeck Newsroom

In a bold move to make smartphones more accessible to millions, MTN MoMo South Africa has launched a rent-to-own smartphone service that enables customers to own a 4G or 5G smartphone from as little as R10 a day  no credit checks or paperwork required.

This initiative positions MTN MoMo firmly among the rising class of fintech-telecom hybrids, joining the ranks of Vodacom Easy2Own, Pepkor FoneYam, M-Kopa, Rentoza, and Teljoy. The sector is booming: FoneYam alone has over 1.5 million active customers, and South Africa’s rent-to-own market including smartphones and consumer electronics is valued at around R5.4 billion ($296 million) for 2024. It's expected to grow by 5.7% annually.

What’s on Offer?

• Samsung A05, A06, A16, and A26 smartphones
• Entry-level to mid-range devices with higher refresh rates, better cameras, and 5G options
• Flexible 3 to 12-month repayment plans
• Ownership after the final installment
• Application via the MTN MoMo App with a small upfront deposit

Why It Matters

“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.”

The launch complements MTN’s wider digital push:

• A R300 million ($17 million) investment to upgrade network infrastructure across Gauteng
• The Smartphone For All initiative: over 1.2 million users accessing 4G smartphones for just R99
• Shesh@ 5G SIM delivery rollout for home internet

“Together with MTN, we are using data science and fintech to democratize access to smartphones. It’s technology with purpose, at scale.” — Tandi Kuper, CEO of Airvantage