While developed nations have easy access to smartphones and other devices, the developing and underserved regions of the world struggle to own even the most basic of mobile devices due to the lack of credit-score systems and consumer-friendly equated monthly instalment (EMI) schemes.
Device financing, however, has helped people in underserved areas to own a smartphone and other modern devices without having to burden themselves with hefty upfront costs.
How does device financing work?
Original equipment manufacturers (OEMs) or device resellers are generally the companies that offer financing schemes to end users. Buyers can fan out their total payment into smaller monthly instalments to be paid over a fixed term. While this finance model sounds like device leasing, in device financing, upon completion of payment of the total cost of the device, users can keep it.
Challenges faced by device financers
The demand for financed devices, especially in developing countries, has skyrocketed due to convenient payment processes.
However, there are several factors that financing companies need to consider when lending devices to end users. The following challenges are some of the most common:
- Management of a large fleet of financed devices: Lending financed devices is only one part of the process. Device financers have to take on tedious procedures to monitor and manage large fleets of devices.
- Delayed payments and EMI fraud: In an event of a user’s inability to pay instalments on time, the recovery of the outstanding payments is a chore that every financing company struggles with.
- Risk of device theft: Incidents of loss or theft of financed devices can incur major losses to the device financers owing to the difficulty in locating and recovering them.
These challenges have driven financing companies towards solutions that allow them to track their financed devices, keep a log of their pending payments and gain control of the situation in the event of payment defaults.
NuovoPay is a security solution that helps device financing firms lend their devices to end users with confidence. It streamlines the management of payment tracking effortlessly. And it is a solution designed for telecommunications carriers, device financers and resellers to make their financing model fraud-proof. It offers features such as device locking in the event of EMI defaults or attempted Sim swaps, and helps financers reduce their manual efforts in payment collection and device security.
On-time payments
Constant payment monitoring and requisition is tiresome and costs device financers valuable time and money. Every time a customer fails to make a payment on time, financing companies must track the user and request payment.
The NuovoPay solution empowers device financing companies to set timely automated payment reminders for bulk devices, which alert end users of their upcoming instalment obligation.
Financers can leverage the creation of custom payment reminders and send them across their device fleets. They can also choose from a wide range of ready-made templates from the NuovoPay dashboard.
Once the automated reminders are sent, financers can keep a track of the sent reminders from the dashboard and monitor the reminder status. Users are made aware of their upcoming payment obligations and this results in a higher ratio of timely payments from users.
In conclusion
Offering device financing schemes in markets that lack credit-scoring systems is a risky affair. If the financed devices are lost or stolen, companies have no way of recovering them. NuovoPay plays the role of a recovery agent to help device financers secure their devices. It does this with the help of a centralised dashboard that provides an overview of multiple financing plans and payment states, and safeguards devices from theft and fraud. This way providers can shift from manual, time-consuming methods of tracking to an automated platform to organise their device financing effectively.
Schedule a free live demo here and get all your questions answered.
About 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 domains.
- This promoted content was paid for by the party concerned