With the advent of 4G technology and the promising 5G technology, smartphones have offered people a gateway to enter the digital economy and achieve socio-economic benefits.
According to Statistical, in 2020, global sales of smartphone units to end users were 1.38 billion. This shows a strong demand for smartphones, which is largely driven by consumers in developed countries. Consumers in developed countries have easy access to smartphone financing, affordable loans, alternative forms of credit scoring, etc. This is not necessarily true for some emerging markets like sub-Saharan Africa or South Asia. According to Newzoo’s Global Mobile Market Reportage 2018, smartphone penetration in South Africa was 35.5%, Vietnam was 37.7%, Indonesia was 27.4% vs. 83% and 79.3% respectively in UK and Netherlands. This shows that in some developing regions, smartphone penetration is noticeably lower.
One of the main initiatives that can be taken and implemented to make smartphone ownership easier for low and middle income consumers in emerging markets is smartphone financing.
Financing smartphones is a win-win formula, but it comes with its share of challenges. Some of the main challenges telecom providers and financial institutions face in financing smartphones / devices are:
- High default rates due to failed EMI payments
- Customers willfully defaulting on payment due to the absence of any credit scoring system
- Physically recovering the funded device in the event of default is costly and difficult
- Customers change telecom operator
Protect funded smartphones against non-payment with NuovoPay
NuovoPay enables telecom operators and financial companies to reduce their EMI default rates. One of the main features of NuovoPay’s solution offering is offline device locking which blocks access to devices in the event of an EMI fault.
NuovoPay offline device lock
There are various cases where this feature is useful, such as when a faulty person can simply turn off internet connectivity on a device, or internet connectivity is poor. But with NuovoPay smartphones, financiers can remotely block access to specific features of the device even if the device is offline (not connected to the Internet). The device will be usable with minimal functionality and NuovoPay will prompt the user to pay the IME.
NuovoPay also provides businesses with an industry-proven solution to resolve device financing issues against non-paying customers and alleviate smartphone rental and financing issues. Here’s how NuovoPay enables carriers to make the device finance model lucrative:
- Simplified Payment Reminders – NuovoPay ensures that no payments are missed by streamlining regular payment reminders on leased devices.
- SIM-based lock – If the user removes the SIM card from the funded smartphone to replace it with the service provided by another company, NuovoPay is alerted and the phone is locked, even when the device is offline.
- Remote device blocking – Remote device blocking – In case of default payment, the device can be locked remotely from the NuovoPay dashboard. This eliminates the need for physical recovery of the device.
NuovoPay allows telecoms and financial institutions Offer a pay-per-view smartphone model that will protect their funded devices from defaults and give them the ability to expand their reach into untapped markets. NuovoPay strengthens smartphone financing models by solving key challenges facing businesses in this segment while enabling smartphone adoption in markets left behind in the mobile revolution.
By the editor.