In a dynamic world driven by innovation and automation, every sector, whether industrial or not relies heavily on the latest technologies. Smartphones are amongst the popular mobile devices that everyone wants to own. The incessant demand for buying smartphones and other mobile devices has given rise to propositions such as device financing.
Device financing allows users to spread out their payment for the purchase of smartphones and other devices into smaller fragments that can be paid over a fixed duration. This makes it possible for users to buy the latest devices despite their high costs without burning a hole in their pockets.
Who are device financers?
Original Equipment Manufacturers (OEMs) or device resellers are generally those who act as financers and develop device financing schemes for users. Such device financing companies allow users to break down their bulk payments into smaller instalments to be paid over a fixed tenure. How device financers are different from device leasers is that upon successful completion of the full payment, the users get to keep their financed devices permanently.
Why has device financing gained popularity?
Consider people belonging to the underserved regions who cannot afford to purchase costly devices, or the millennials and Gen-Z who desire to own the latest smartphones, financed devices cater to these requirements are present an economic method of purchasing the latest devices. Needless to say, financed devices have gained popularity in no time. Not only do financed devices pave the way for people, despite their economic statuses to own devices like smartphones, but also;
- Distributes financial burden
- Enables access to the latest technology
- Does not require extensive documentation
Challenges faced by companies in lending financed devices to users
The rising prices of smartphones and other latest devices have led to a massive population shift towards purchasing financed devices. The surge in adoption of financed devices brings forth some challenges for the financing companies such as;
- Management of a large fleet of financed devices: Device financing is much more than merely lending devices to users. It involves device fleet management, payment tracking and much more that can be a tedious and time-consuming task for financing companies.
- Delayed payments and EMI fraud: In an event of a user’s inability to pay timely instalments, the recovery of the outstanding payments is a hectic 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 the lost or stolen devices.
How can device financing companies tackle the risk of EMI frauds?
While financed devices have proven to be extremely beneficial to their consumers, the risks and challenges they present to the device financers are numerous. Device financing companies, OEMs and resellers, have begun to trust payment security solutions that help them secure their financed devices.
NuovoPay is one such security solution that helps device financing firms lend their devices with confidence and manage tedious payment logs of their financed device fleets effortlessly. Let’s peek into some of the benefits NuovoPay provides to safeguard financed devices.
- Remote mobile locking technology One of the most apparent concerns that device financers face is the risk of their financed devices being stolen. NuovoPay offers a remote device locking functionality that lets the financers block the user’s access to their devices in case of theft or payment defaults.
- Automated payment reminders Device financing enterprises can set timely automated payment reminders that can be set for bulk devices which alerts the users of their upcoming instalment. This nullifies the chances of users and financers losing a track of their periodic payments and results in a higher ratio of timely payments from users.
- SIM-based locking Several device manufacturers or resellers that finance devices partner with telecom service providers to offer devices that are pre-installed with a SIM service. The payment and service schemes for such bundled devices include the telecom pricing plans in addition to the device’s periodic instalments.
However, this also brings about the risk of users replacing the pre-installed SIM card with a cheaper alternative. NuovoPay offers security not only towards the financed device but also for the telecom carriers with its SIM-based locking functionality.
If users attempt to remove the pre-bundled SIM card from the device, the device blocks the user’s access to it, rendering the device unfit for further use.
4. Option to integrate billing system providers
NuovoPay enables device financing companies to integrate leading billing system software with its dashboard to simplify complex tasks and help the financing companies in decluttering their payment records. With this, payment status monitoring, tracking receipts and inventory details of a large fleet of devices can be carried out effortlessly.
Nuovopay plays the role of a recovery agent to help device financers to secure their financed devices with the help of a centralized dashboard that enables them an overview of multiple financing plans, payment statuses and safeguard their devices from theft and fraud. This way, providers can shift from manual, time-consuming methods to track inventory records and payment follow-ups to an automated platform to organize their device financing model effectively.
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By Staff Writer.