Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Company News » Device financing: How NuovoPay solves challenges for operators

    Device financing: How NuovoPay solves challenges for operators

    By Swapnil Shete9 April 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Sara Kurfeß/Unsplash.com

    Technology can serve as one of the great equalisers, opening equal opportunities to people across the world. This is especially true in the post-pandemic world – technology, and particularly mobile devices, have helped people to stay connected, education to be uninterrupted and businesses to stay afloat.

    As we move towards a more smartphone-dependent world, device financing looks like a more lucrative and obvious choice to acquire the latest technology. Telecommunications carriers have been at the forefront of device financing but there are apprehensions preventing them from going all in.

    In this article, we will discuss the hesitation operators have in device financing and how NuovoPay can help.

    Device financing: Growing popularity

    The device financing and leasing model has been around for a long time, especially in the developed countries where the technology opens its doors earlier than the rest of the world. This can be attributed to the dynamically changing landscape of technology products, especially with new smartphone models being launched every month.

    Tech-savvy millennials and Gen-Zers love to grab the latest technology, whatever it takes — be it standing in long queues for the launch of an iPhone or investing in upgrading their Android phones to the latest version every year or so.

    Device financing serves as the perfect way for consumers to acquire the latest smartphone without burning a hole in their pocket

    Device financing serves as the perfect way for consumers to acquire the latest smartphone without burning a hole in their pocket. In countries with a centralised credit score system, the device financing model has grown immensely in popularity. In the developing world, however, the model has gained only slow and steady momentum to date.

    The pay-as-you-go model is picking up in underserved markets and consumers across the world seem interested. This can serve as a great chance to curb the digital divide and open new opportunities for people in places that previously only allowed device financing based on a valid, solid credit history.

    Operators and device financing

    Telecoms carriers have been in the device financing game for quite some time. It is a win-win situation. Carriers can expand their customer base by coupling smartphones with carrier services. Consumers, on the other, hand can get their hands on the latest smartphones at a fraction of the cost.

    Operators depend largely on the revenue that flows in from long-term customers, especially the ones that buy data and calling plans bundled together. Those that have been exploring the device financing model are faced with new challenges: With the rising price of smartphone hardware, the profit margin in device financing has become meagre. Device financing is the obvious choice for consumers but the cost has to be borne by the carriers.

    And this is not the end of their plight: With 5G technology taking off, hardware compatibility is going to be an issue that can further curtail the profit margins for operators.

    What’s worse is that the device financing model does not guarantee customer loyalty. After the initial lock-in period, if there is one, the consumer can simply switch to another service provider. The operators do continue to receive the payment for the financed device but lose out on the customer for their primary offering — telecoms services.

    How NuovoPay makes it better

    NuovoPay is a solution designed to solve the problem. It does that by enabling telecoms companies to lease smartphones by bundling them with their services (such as calling and data), without risking losing the customer from their core business.

    NuovoPay de-risks device financing and empowers operators not only to dive into the device financing market, but also ace it.

    Here’s how it works:

    • Operators get started by enrolling their devices to be to be leased out on the NuovoPay platform. It is non-intrusive client software that sits seamlessly on the device without impacting the end-user experience.
    • Operators can configure Sim-based locking for the devices via NuovoPay.
    • Bi-weekly, weekly, monthly or customised payment reminders can be triggered on the financed devices using NuovoPay.
    • Consumers can continue using the smartphone by paying the equated monthly instalment, or EMI. If they fail to do so, the device can be remotely locked and user access is blocked. Users can continue using the device only after the payment is completed.
    • Similarly, with the Sim-based locking, if the smartphone user removes the Sim card to replace it with another one, device access is blocked. Users can therefore access the device only if they stick to the telecoms carrier they have financed the device from.
    • Sim-based locking and failed-EMI locking also work in offline mode. The smartphones need not be connected to the Internet for NuovoPay to take over.
    • The end user can rectify the locking conditions by either using the original Sim or paying off what’s owing to continue accessing the device. Device access can be unlocked remotely from the NuovoPay dashboard and the end user’s data and settings will stay intact.

    NuovoPay eliminates the need for a physical recovery agent by securing the underlying payments against financed devices and ensures customer retention for telecoms carriers stepping in the device financing game.

    With the hesitation around losing the customer no longer around, operators can take a deep dive into the device financing market, especially in underserved areas where conventional financial organisations do not finance smartphones with a pay-as-you-go model.

    Partnering with NuovoPay can help operators tap into the device financing market with ease. Get started by scheduling a free live demo where you will get all your questions answered.

    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.

    • This promoted content was paid for by the party concerned


    NuovoPay
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEUCafrica, leader on Citrix on Azure, achieves Citrix platinum status
    Next Article Interview: MySky Networks founders on building a successful MSP

    Related Posts

    How NuovoPay helps prevent late payments, defaults on financed devices

    14 December 2021

    4 ways device financing companies can reduce client payment default risk

    3 November 2021

    How to prevent fraud and payment delays in device financing

    10 September 2021
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.