LendTech company DivideBuy and tech recommerce business musicMagpie, have announced the launch of a new cloud-based rental technology platform. The software enables consumers to rent mobile phones from musicMagpie’s eCommerce store.
The solution will be delivered by musicMagpie for a seamless user experience and is the first consumer hire option of its kind offered by the retailer. The solution works alongside all other credit options and in the same way as they would with a standard finance option, customers will be able to check their suitability for a rent prior to making a purchase.
According to Deloitte, smartphone adoption exceeds 80 per cent in the UK, indicating consumers’ increasing reliance on electronic devices and technical solutions for various aspects of their daily lives. Research from Ofcom late last year indicated many consumers struggle with the affordability of such devices, with 5 per cent of those surveyed unable to pay their mobile phone bill.
The ability to rent a device, rather than buy, means monthly payments will be much lower, with the option for consumers to choose their monthly payment amount to suit their budget.
James Bradley, director of sales and business development for DivideBuy, commented: “It’s crucial to meet the growing demand from consumers who are showing a clear desire for more affordable and accessible methods of payment, to ensure they are not excluded from using the technology and services so many take for granted.
“This partnership demonstrates our technical ability to adapt to the changing market and demands of consumers. Ultimately, our aim is to innovate the LendTech space to better serve consumers and allow retailers to capitalise on the opportunities presented every day in the eCommerce arena.”
Jon Miller, Chief Commercial Officer at musicMagpie, added: “We’re proud to have launched a tech rental proposition for our customers, that will allow them to rent a device of their choice for a low monthly cost, no upfront fees and no lengthy contracts for them to get tied into, all with the added benefit of free upgrades after 12 months. With the wide selection of phones on offer, the financially savvy consumer has a whole selection to choose from and we’re thrilled to be partnering with DivideBuy to offer this flexible payment option for our customers.”