Smartphones are no longer luxury gadgets or discretionary choices. They are a prerequisite for participation in the digital economy. Yet for millions of South Africans, suitable devices are financially out of reach. How do we bridge the gap?
“Smartphones have effectively become economic infrastructure,” says Deon Verster, country manager for PayJoy South Africa. “If you don’t have access to a capable device, you’re locked out of earning opportunities, digital services and even basic banking. But the challenge has never been demand; it’s affordability.”
Quantifying the smartphone affordability gap
As more services move online – from job applications and digital payments to learning platforms and healthcare access – the smartphone finance barrier is an ever-greater disadvantage. Industry analysts and policymakers alike recognise that smartphone access is no longer a consumer electronics issue, but a foundational element of digital and financial inclusion.
According to GSMA research, overall mobile penetration in South Africa exceeds 95%, but smartphone ownership tells a very different story. Statista forecasts that the number of smartphone users in South Africa will grow from 18.65 million users in 2026 to an estimated 25.8 million users by 2029.
For lower-income households, affordability remains a huge constraint, with smartphone prices representing between 67% and 80% of monthly income in some cases. The result is a persistent digital access gap at precisely the moment when smartphones are becoming essential infrastructure for everyday life.
Overcoming exclusion: different smartphone finance models
Alternative device financing models are emerging as one of the most practical responses to this challenge. Rather than requiring large upfront payments or traditional credit checks, these models allow consumers to access smartphones through structured, cashflow-aligned repayments. For many first-time users, this approach represents easier access to a smartphone without resorting to informal lending or high-risk debt.
PayJoy, which is a global company focused on expanding smartphone access across emerging markets, has seen this shift clearly in South Africa. The company operates a smartphone rental model designed for emerging-market conditions, enabling customers to access devices using only a government-issued ID and a deposit, without a traditional credit check.
Since launching locally five years ago, the company has recorded a steady increase in demand for smartphones offered on flexible payment terms.
From 2023-2024, PayJoy’s South African customer base grew 129% as more consumers opted for smartphone rental models instead of traditional contracts or cash purchases. According to Verster, “Payment models need to support progress, not punish people for being excluded from traditional systems.”
Unintended benefit: creating a credit record
There is also growing recognition that structured device access models can support first-time credit building. For consumers with limited or no formal credit history, consistently meeting smartphone rental payments can serve as an early demonstration of financial reliability, helping to establish a measurable credit footprint over time.
The gap between basic phone use and smartphone access remains one of the most significant barriers to digital inclusion in South Africa, but also represents a huge opportunity. Closing that gap could unlock wider participation in digital services, financial systems and income-generating platforms.
For companies like PayJoy, the focus is clear. “A smartphone is often the first step toward economic independence,” says Verster. “When access models are designed responsibly, a new phone can represent more than connectivity – it can be the beginning of long-term financial inclusion.”
About PayJoy
PayJoy is a global financial technology company dedicated to expanding access to the digital economy by empowering underserved customers to achieve financial stability and success. Using patented technology that turns smartphones into digital collateral, PayJoy enables consumers, including those without formal credit histories, to access smartphones safely, transparently and affordably. Since launching in South Africa five years ago, PayJoy has become a trusted enabler of financial inclusion, helping South Africans access smartphones and build credit for the first time. By growing its nationwide presence, PayJoy continues to create opportunities for digital participation, job creation and economic growth. Globally, PayJoy serves over 17 million customers – unlocking access, connectivity and progress for communities worldwide.
- The author, Deon Verster, is the country manager for PayJoy South Africa
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