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MTN’s fintech arm, MoMo (Mobile Money), has unveiled a bold initiative aimed at radically expanding smartphone access across South Africa—offering 4G- and 5G-enabled devices on credit to prepaid customers, with zero background checks or traditional credit vetting.
In a statement released Thursday, the telecom giant announced its “Handset Rent-to-Own” program, designed to migrate millions of users still relying on legacy feature phones to modern devices, thereby accelerating digital inclusion and freeing up spectrum from outdated 2G and 3G networks.
The new plan allows customers to rent smartphones from as little as R10 per day, all managed via the MoMo app. There’s no need for payslips, paperwork, or credit history—making the scheme particularly relevant for South Africa’s informal and underbanked communities.
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“Powered by MTN’s trusted fintech platform in partnership with Airvantage, the service uses AI-driven affordability assessments that are smart, secure, and tailored to the realities of South Africa’s economy,” the company stated.
Customers can choose flexible payment plans of 3, 6, 9, or 12 months, after which the smartphone becomes fully owned by the user. A small deposit is required to initiate the process through the MoMo app.
The rollout will initially feature 4G-enabled Samsung smartphones, with more brands to be added in coming months. This launch follows closely on the heels of MTN South Africa’s R99 smartphone campaign, revealed in May, which aimed to provide ultra-low-cost smartphones to millions of South Africans.
At the time, MTN South Africa CEO Charles Molapisi said the goal was to convert long-term, loyal users of 2G technology to modern devices.
“On the MTN network today, we have about 85% smartphone penetration, meaning there are some five or six million customers on the network who do not have smartphones,” Molapisi explained.
“When you zoom in on those customers, 60–70% of them have been with us for 10–15 years—they are very loyal, but they simply cannot afford a smartphone. Those are the customers we are targeting.”
South African telecom providers are under increasing regulatory and operational pressure to retire legacy networks, particularly 2G and 3G, which still occupy valuable spectrum that could be reallocated to high-speed 4G and 5G services.
Molapisi noted, “There are four generations of mobile tech running concurrently in South Africa. That’s too many layers to manage efficiently. But you cannot simply abandon millions of customers still on 2G. You have to bring them along—and that means creating new funding models.”
MTN’s rent-to-own strategy could redefine how low-income, prepaid users across Africa access high-end technology. By removing traditional financial barriers, the program promotes financial inclusion, digital literacy, and greater participation in the modern digital economy.
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