LendTech firm DivideBuy has teamed up with electronics retailer musicMagpie for a revolutionary new technology platform which allows customers rent mobile phones instead of buying them.
The company, which operates out of offices in Brunswick Street, Newcastle, has launched its ‘first-of-a-kind’ rental technology software, called Powered by DivideBuy.
The cloud-based technology means financially savvy customers can now hire a device from musicMagpie’s online store, rather than buy one – meaning monthly payments will be much lower.
It also gives customers the option to choose their monthly payment amount to suit their budget.
The launch follows research from Ofcom late last year which found five per cent of surveyed customers cannot afford to pay their mobile phone bill.
James Bradley, director of sales and business development for DivideBuy, said: “It’s crucial to meet the growing demand from consumers who are showing a clear desire for more affordable and accessible methods of payment, in order 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 e-commerce arena.”
Founded in 2015, DivideBuy aims to make life more affordable by transforming the point-of-sale (POS) finance industry through innovation and technology.
It works with more than 500 retail partners across the UK to offer a point-of-sale credit platform which lets people spread the cost of the purchases, completely interest-free.
Jon Miller, chief commercial officer at musicMagpie, said: “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.”