Device financing in South Africa is a lifeline for millions striving to participate in the digital economy. However, market challenges like limited access to credit and high device costs make smartphone ownership a hassle.
Datacultr is playing a major role in overcoming this challenge of affordability by making device financing secure and accessible across South Africa. By helping financial institutions, telecom operators, and retailers reach underserved and new-to-credit customers, Datacultr reduces risk and opens the door to greater financial and digital inclusion.
Key Challenges of Smartphone Affordability in South Africa
Device financing isn’t just helpful, it’s essential for millions in South Africa, and the numbers speak louder than words:
High Reliance on Feature Phones
Almost 33% of South Africans still rely on feature phones or shared devices.
Low Digital Inclusion
About 35% of South Africans live in areas with mobile internet coverage but do not use it.
The cheapest internet-enabled devices cost 20% of the monthly GDP per capita.
The median cost of 1GB of data is about 6% of monthly income for the poorest income quartile.
Device financing isn’t just helpful, it’s essential for millions in South Africa, and the numbers speak louder than words:
- High Reliance on Feature Phones: 33% of South Africans still rely on feature phones or shared devices.
- Low Digital Inclusion: About 35% of South Africans live in areas with mobile internet coverage but do not use it.
- High Device Costs: The cheapest internet-enabled devices cost around 20% of monthly GDP per capita.
- High Data Costs: The median cost of 1GB of data is about 6% of monthly income for the poorest income quartile.
Device Financing Needs More Than Just a Lock
South Africa’s smartphone market is set to reach $3.1 billion in revenue in 2025, but growth is slowing as affordability issues persist and feature phones dominate. While programs like MTN’s budget smartphone initiative highlight the demand, lasting success relies on solid risk management frameworks and trusted debt collection South Africa can trust.
Did you know? Despite 97.5% of mobile connections being “broadband-ready,” a significant portion of the population remains offline due to device and data costs.
Traditional device locks can help reduce defaults, but using them too aggressively risks alienating customers and damaging brand trust. What’s needed is a smarter risk management framework, one that:
- Combines security with empathy
- Places emphasis on customer needs, and
- Educates borrowers, ensuring repayment without compromising customer relationships
This is exactly where Datacultr steps in, offering innovative device locking and risk management solutions that make smartphone financing more effective and inclusive across South Africa.
Also Read: The Emerging Need for More Than Just a Device Locking Platform
Datacultr’s Approach Goes Beyond Just Locking
Datacultr doesn’t just provide a lock for the financed devices that a financier deploys when payments are missed. Instead, it provides a more thoughtful approach by offering a risk management framework that puts people first. The platform combines advanced device locking with smart digital communication and flexible payment options, turning what could be a stressful process into a chance to help customers stay connected and on track.
Here’s how Datacultr’s device lock platform-Odyssey works:
- Automated Notifications: Send timely reminders, payment nudges, and “Promise-to-Pay” options to help customers stay informed and engaged throughout their repayment journey.
- Customised Repayment Journey: Create a unique customer journey for each customer-micro-segment, to ensure maximum engagement and efficient output.
- Remote, Secure Locking: Easily lock devices remotely when payments are missed, and enable instant unlocking as soon as a payment is made
- Works Across Devices: Datacultr’s platform supports smartphones, tablets, and even smart TVs, making it easy for providers to offer device financing on different products.
With 38% of South Africans reporting they may miss at least one bill or loan payment this year, proactive engagement isn’t just good business, it’s essential to help maintain the financial health of millions who are on such device financing programs.
The Datacultr 100% Club: Setting a New Standard
With Datacultr, it’s not just about on-time payments, it’s about ensuring every customer can be reached, every message gets delivered, and every action is easy to take.
That’s what the Datacultr 100% Club is all about:
100%
Contact-ability
100%
Deliverability
100%
Actionability
Also Read: Smart Device Financing Solutions with 100% Contact-ability
For South African lenders, it means you’re always connected to your customers, your reminders and payment options actually reach them, and it’s simple for people to respond or pay, helping everyone stay on track.
The Impact of ‘Smarter’ Device Financing in South Africa
The ripple effect of smarter device financing goes beyond individual borrowers. As more South Africans gain access to affordable smartphones and stay connected through regular payments, the entire ecosystem benefits:
- Bridging the Digital Divide: Device financing directly addresses affordability barriers, helping more South Africans, especially those in low-income groups, access smartphones and participate in the digital world.
- Supporting Sustainable Business Growth: Telecom providers and retailers benefit from lower default rates, improved customer loyalty, and the ability to reach new market segments by offering flexible, accessible device financing options.
- Boosting Financial Inclusion: By making smartphones accessible, device financing enables more people to use digital financial services, such as mobile banking and mobile money, which are key drivers of financial inclusion and economic empowerment.
Smarter debt collecting isn’t just about recovering payments, it’s about building trust and staying connected with customers.
Build Long-Term Customer Relationships with Datacultr
Datacultr believes collections should build bridges, not walls. By prioritizing transparency and support, Datacultr helps lenders turn repayments into opportunities for trust and loyalty, boosting repayment rates and long-term value.
In a market where device affordability and payment reliability are critical, Datacultr’s smart, customer-first technology is changing the game, helping South Africa’s lenders and borrowers unlock the future, one device at a time.
Sources:
- https://mybroadband.co.za/news/smartphones/506062-south-africas-feature-phones-here-to-stay-until-smartphone-prices-drop.html
- https://www.ecofinagency.com/telecom/2403-46534-mobile-internet-access-still-limited-in-africa-millions-remain-offline
- https://www.ecofinagency.com/telecom/2702-46450-s-africa-seeks-to-boost-smartphone-penetration-rate
- https://www.geopoll.com/resources/south-africa-smartphone-internet-usage/
- https://www.reuters.com/business/media-telecom/mtn-south-africa-aims-boost-4g-adoption-with-budget-smartphones-2025-05-05/
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