MTN’s New Smartphone Plan Targets Millions Still Stuck on 2G Feature Phones
Even without credit history or paperwork, millions of South Africans may now have a way to own a smartphone — and the timing couldn’t be more urgent.
MTN’s mobile money platform, MoMo, is offering prepaid users in South Africa a new way to get a smartphone — and they don’t need a payslip or credit history to do it.
Through a new rent-to-own option, customers can now order a 4G or 5G-enabled smartphone directly from the MoMo app and pay for it in small daily amounts. Prices start at ZAR10 a day, which works out to just over half a dollar. There’s a small deposit upfront, but that’s about it — no contracts, no paperwork, and no credit checks. Instead, the system uses AI to make affordability decisions in real time.
At launch, the program is offering Samsung smartphones, with more brands expected down the line. It’s the kind of offer clearly aimed at the millions still using old feature phones — not because they want to, but because smartphones remain too expensive.
And time’s running out. By the end of 2027, South Africa plans to shut down its 2G and 3G networks for good. That means anyone still using a non-smartphone device will be cut off from basic voice and SMS services unless they upgrade.
MTN seems to be reading the room. Earlier this year, the company launched a ZAR99 smartphone deal to test interest. At the time, CEO Charles Molapisi said about five to six million people on the MTN network still didn’t have smartphones — even though overall penetration was around 85%.
In other words, this isn’t a niche problem. And it’s not just about access to social media or better cameras. As more services — from banking to health to education — move online, not having a smartphone means being left behind.
MTN’s latest push shows how mobile operators are trying to fill the gap with flexible, low-friction financing. By skipping traditional credit scoring and offering low entry costs, MoMo’s rent-to-own model could reach people banks typically ignore.
Whether it catches on at scale is still an open question. But with the 2G/3G switch-off creeping closer, the incentive to make smartphones more accessible has never been higher. For many, this kind of plan could be the bridge to a future that’s already arrived.
Go to TECHTRENDSKE.co.ke for more tech and business news from the African continent.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
TechTrends Media Podcasts
