In the world of smartphones, the conversation remains focused on accessibility. For millions of consumers across emerging markets, accessibility is not just the affordability challenge of owning a smartphone to get connected but also includes upgrading to a better, smarter, and more capable device.
This shift, which we call premiumization, describes the consumer trend toward a desire to purchase higher-end devices with more advanced functionality. In particularly price-sensitive (LMIC) countries, the concept of using Trustonic’s secure device locking platform to help retailers, carriers and financiers to offer higher tier models to customers they may previously have only offered lower tier, cheaper devices can seem counter-intuitive.
With the help of secure device financing we help our customers with the confidence to offer financing options to a much wider range of customers – without increasing risk.
Why Premiumization Matters
Although smartphone penetration in low and middle-income countries (LMICs) is rising, there is still a long way to go to close the digital divide. Access to credit is often a barrier for consumers purchasing the device they need. Many first-time smartphone buyers or those using entry-level phones are ready to upgrade, but lack access to affordable financing to help manage the costs.
Higher tier devices offer longer life cycles, better performance, and access to richer digital services. The expansion and increased accessibility of digital services to help manage day to day life is driving change, but without the right infrastructure, most consumers are locked out of the benefits.
According to the GSMA Mobile Economy Report, 1.4 billion people remain offline, largely because they can’t afford devices that support modern internet use (GSMA, 2023), citing that the biggest barrier is due to smartphone affordability. (Reuters, 2024).
Trustonic’s Role: Making Premium Devices a Safe Bet for Retailers and Financiers
Trustonic’s device locking platform provides a secure way for mobile carriers, retailers and financiers to offer smartphone financing, even in regions where traditional credit checks aren’t possible. By embedding secure locking capabilities into devices, Trustonic enables:
- Lower-risk finance models for all levels of smartphones – decreasing payment default and delinquency by as much as 70%
- Wider access to credit, even for consumers without formal credit histories or who typically deal in cash payments and daily or weekly salaries
- The opportunity to teach consumers positive habits when it comes to making repayments, potentially giving them access to further finance on other products
- An increase in the availability and ranging of premium devices in price sensitive markets, helping to increase rates of digital inclusion
The resulting higher conversion rates can be seen in our recent comprehensive year on year analysis of smartphone ownership across Africa where the Average Selling Price (ASP) of all entry level devices rose by 57%, from $70 in 2023 to $110 in 2024. With no other significant macro changes in the region, the growth is attributed to access to credit check free device financing, where consumers spread the overall cost by paying monthly.
The research shows that access to secure device financing has led to a paradigm shift in smartphone affordability, consistently pushing up the ASP, a 133% increase over two years, as mobile carriers, retailers and financiers can safely and confidently offer higher tier devices to previously excluded customers.
Economic Uplift: The Broader Value of Smartphone Upgrades
Allowing customers to purchase a higher tier smartphone means more than just a better device, it is a gateway to family, financial security, and empowerment both in personal and professional spheres. It will also have a positive economic impact, a World Bank study shows that a 10% increase in mobile broadband adoption can boost GDP growth by up to 2.5% in low-income nations.
With premium phones in hand, consumers are better equipped to run businesses, access education, navigate modern health systems and have access to banking systems that would previously be unavailable.
Premiumization is Good for Everyone
Trustonic’s secure device locking platform isn’t just a positive aide for financiers when it comes to reducing delinquency, it unlocks the premiumization trend, helping more customers to upgrade, helping retailers grow ASP and loyalty, and encouraging economic growth.
For mobile carriers, retailers, and financiers looking for a way to increase revenues and grow their customer base, premiumization isn’t a risk – it’s an opportunity.
And with Trustonic, it’s a secure one.
