Technology firm Samsung has partnered with Safaricom and M-Kopa to roll out a Pay-As-You-Go mobile phone solution in Kenya.
This initiative is described as a world first mobile security solution enabling carriers, financial partners and retailers running installment plans to remotely manage Samsung devices. The initiative will leverage the benefits of Safaricom’s fast 4G data network and service in Kenya.
Essentially, the pay-as-you-go initiative will enable carriers and dealers to expand their current customer base with lower upfront fees and interest rates.
It offers customers the opportunity to access a unique prepaid financing plan and premium Samsung devices at an affordable price.
Additionally, it unlocks the potential to provide device micro-financing plans, thus making smart phones more affordable. The system will also manage smartphone usage based on specific prepayment plans.
Even so, experts have warned that purchasing the phone using the product might cost double or more.
For instance, the flagship product on the platform is Samsung Galaxy A10s, which retails at around Sh12,900.
However, a customer buying the phone on the pay-as-you-go will have to part with a deposit of Sh3500 via M-Pesa and pay a daily fee of Sh60 for a year to fully own the phone.
In a year of 365 days, the buyer paying Sh60 daily will have spent Sh21900, in addition to a down payment of Sh3500, bringing the total to Sh25400, about double the retail price.
The phone can be purchased at selected Safaricom and M-Kopa shops.
Speaking during the launch in Nairobi, Samsung Africa president Sung Yoon said the partnership will help accelerate economic growth in Kenya’s mobile industry.
”Samsung is proud to be the provider of not only the 4G smart phones but also Samsung Knox platform which provides multi- layered defence grade security protection against intrusion and malicious threats to bypass the system lock,” Yoon said.
The smart phone has become an integral part of our daily lives due to its outsized impact in linking people to opportunities. At Safaricom we are keen on partnerships that enable us to empower more customers,” Sylvia Mulinge, chief customer officer, Safaricom said.