Prepaid carriers, despite usually offering budget-friendly rate plans, have a disadvantage. Unlike the major postpaid carriers in the United States, namely AT&T, Verizon, and T-Mobile, most cannot offer direct device financing. Activating prepaid service does not come with a credit check, and thus your prepaid carrier cannot endorse you for a financing plan on the latest phones.
Prepaid carriers know this can hurt their appeal, and they are finding creative ways to get a new device in your hands just like postpaid carriers. Not everyone, especially a budget-conscious customer looking at their wireless bill, is ready to pay full price for a new phone.
MobileX, one of the newer prepaid carriers offering AI-driven usage-based data allowances, is the latest to offer a new way to buy a phone.
The Next Phase Is Here For MobileX
MobileX has made major strides in their ability to provide a full end-to-end wireless experience for their customers, particularly in the device category.
First, customers are now able to purchase devices from the carrier. All devices that MobileX offers are unlocked, free to be used on any carrier. That’s a pretty rare thing.
Second, customers have the ability to finance that device as well, allowing customers to pay for their device on their own terms.
There are currently a whopping 29 devices available to purchase on the MobileX website.
Apple – iPhone 8, iPhone 8 Plus, iPhone SE 2nd Gen, and iPhone 11
Google – Pixel 6a 5G, Pixel 6 5G, Pixel 7, and Pixel 7 Pro
Motorola – G Play (2023), G Stylus 4G 2023, Moto G 5G (2023), Edge 5G (2022), Moto G Stylus 5G (2023), One Ace 5G, G Power 5G (2023), RAZR 2023, ThinkPhone
OnePlus – Nord N30 5G, Nord 20 5G
Samsung – Galaxy Note 10/10+, Galaxy S20+ 5G, Galaxy S21 FE 5G, Galaxy S21+ 5G, Galaxy S22/S22+, Galaxy S23/S23 FE, Galaxy Z Flip 5 5G
Device Financing On Prepaid
MobileX is the latest carrier to partner with Affirm, a financing company that looks to make paying off expensive purchases easier. They are not the first prepaid carrier to do so – Mint Mobile and Cricket Wireless, to name a few, also offers device financing through Affirm.
Various other carriers, like Consumer Cellular, Visible, Straight Talk, and Total by Verizon, all offer their own financing programs through other financing companies like EasyPay or SmartPay. It’s no surprise Affirm was MobileX’s choice, as they already have a partnership with Walmart who also uses the service.
Device financing gives prepaid carriers an added edge of legitimacy in the race for mobile market share. Being an MVNO already permits them to typically offer incredibly competitive pricing for monthly plans. Now, they can also get newer devices to customers without the full-price sticker shock that comes from higher-end devices. Find the right MVNO, and you might be looking at the best of both worlds.
With MobileX proactively customizing plan options based on data usage, this could be worth considering for many curious shoppers. No need to break the piggy bank to get the right phone with the right plan.
Some Fine Print
Despite being a prepaid carrier, working through a third-party financial institution doesn’t eliminate the need for a credit check. To sign up for an account with Affirm, be ready to provide your phone number (required), first legal name, last legal name, email, and the last four digits of your social security number. Your ability to finance will be based on available credit history.
Per Affirm’s website:
Your rate will be 0–36% APR based on credit, and is subject to an eligibility check. Affirm Pay in 4 payment option is 0% APR. Options depend on your purchase amount, may vary by merchant, and may not be available in all states. A down payment may be required. For example, a $800 purchase could be split into 12 monthly payments of $72.21 at 15% APR, or 4 interest-free payments of $200 every 2 weeks.
https://www.affirm.com/
So, like any financing options out there, your mileage may vary. Affirm does promote their service as setting the right expectations up-front. Like any payment arrangement, be sure to look before you leap.
There’s also the downside of promotions. As a prepaid carrier, MobileX wasn’t likely to offer device promotions anyway, but with financing being done via a third party, along with the fact that devices are unlocked from the start, the chances of discounted devices in exchange for staying with MobileX long-term are unlikely. Who knows what the future holds, though.
That being said, if your credit is decent, the potential for a 0% interest financing option to pair with your cheap prepaid service is pretty appealing. Just don’t miss a payment!
Do you think there is a future in prepaid carriers offering financing services? What needs to happen to tip the tides of three-carrier dominance in the United States? Let us know your thoughts below.
