Mobile technology is no longer a luxury, even for enterprises operating within the conventional realms. Every enterprise or business, large or small, today deploys a wide range of equipment powered by mobile technology to ease its operations, bringing in much-needed fluidity and operational efficiency. With remote working picking up across industries and frontline operations increasingly depending on mobile technologies, the demand for mobile equipment is higher than ever.
And this is only the beginning.
With the growing influx of mobile devices in the enterprise environment, the market for these devices is getting more competitive than ever. With several original equipment manufacturers venturing into space, the enterprises are spoilt for choice. However, not all enterprises want to take a plunge into mobile transformation by investing outright in mobile devices, especially when there is an easier, more lucrative alternative available.
Device financing and leasing for the win
Yes, device financing. The device leasing and financing market is gaining momentum, even in the previously underserved markets. Enterprises are looking at trying out devices for a considerable amount of time before making an investment in purchasing them — and why not? It saves them a principal investment, pleases their tech-savvy employees since the upgrades can be frequent and effortless, and they do not have to stick to a piece of technology they don’t get value from. Device leasing in the enterprise environment is therefore expected to garner more eyeballs, especially as newer technology is launched every day.
A similar experience holds true in the consumer market. With new phones and tablets being launched in the blink of an eye, consumers find more value in leasing devices rather than purchasing them. This gives them more leverage in terms of upgrades; they have to invest a fraction of the total price of the device; and they can always have the best and the latest phone.
For both the consumer and enterprise markets, the device financing value chain was previously dependent on the banks and other financial institutions. For original equipment manufacturers (OEMs) operating on a larger scale, in more diverse and open markets, this was easy. Keeping up with the best lending practices imposed by the banks was possible, albeit not easy. For smaller and mid-size OEMs, however, getting the bank to approve the device financing cycle could potentially cost a consumer. In a world driven by customer experience and retention, this could be an expensive endeavor for OEMs.
This is why equipment manufacturers find it more realistic to dive into device financing themselves, eliminating the need for a bank or any other financial institution. The OEMs lease out devices to enterprises and consumers without going into the nitty-gritty of credit scores and histories. They have realised that if they want to stay on top of the mind of their consumers in the crowded mobile technology market, they have to risk the odds.
The risks of device financing for OEMs
Clearly, introducing device financing can help the OEMs reach more customers. And in most cases, especially in the enterprise environment where documentation is solid, this works out perfectly well.
Until it doesn’t.
The OEMs are under a constant threat of losing devices, especially in direct-to-consumer device financing. There is no layer of the underlying security that can potentially help in recovering the devices if equated monthly instalment (EMI) payments fail. The physical recovery of devices is an even more expensive undertaking, which may or may not be successful. The market is heavily unregulated and there is not much that can be done if the customer decides to stop paying for the leased device.
Enter NuovoPay: De-risking device financing
NuovoPay is a mission-centric innovation that is designed to address the pain points around device financing, especially for OEMs that have less control over the leased devices (compared to telecommunications carriers, which can disrupt the service to the device). NuovoPay realises the complexity of device financing for OEMs and helps them leverage the market opportunity without losing their device investments. NuovoPay not only eliminates the risks associated with device financing but also assures a seamless device-leasing experience to customers, adding to the value for OEMs.
Here’s how NuovoPay works:
- The equipment manufacturer can enrol the devices to be leased with NuovoPay. Non-intrusive client software seamlessly integrates with the device over the air, in bulk, omitting the need to individually and manually prepare each device.
- The devices are then made visible to the OEMs on the NuovoPay dashboard. The OEMs can now track payment information against each device, send quick payment reminders at weekly, monthly or quarterly intervals.
- The end user continues to use the device seamlessly by paying timely reminders. The end user can pay the EMI with multiple payment options integrated into the device.
- If the EMI payment fails, the OEM can block the end-user access to the device from the NuovoPay dashboard. This also works when the device is offline. The end user can no longer access the device until the payment is completed.
- The end user can now pay the pending amount and the device access can be unlocked remotely from the NuovoPay dashboard. The end-user data and settings on the device stay intact.
NuovoPay dismisses the need for having physical access to the device that has defaulted the payments and acts as a remote recovery agent for the financed devices. OEMs no longer have to withstand the burden of losing device inventory and the potential risks of device financing are eliminated.
By partnering with NuovoPay, OEMs can unleash the potential of the device-financing market and reap outstanding returns, standing out from the competition. By serving directly to customers without the intervention of a bank or any financial institution, equipment manufacturers can target untapped markets in Africa and Asia-Pacific. All of this, while de-risking the future of the financed devices.
If this doesn’t sound like a fruitful partnership, what does?
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About Swapnil Shete
The author, Swapnil Shete, is a product marketing manager at NuovoPay. He has a passion for design and technology and focuses on optimising the marketing funnel. When he isn’t working, Shete loves to evaluate software-as-a-service solutions in the marketing and sales domain.
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