Admittedly, not everyone wants to finance a smartphone but it’s essentially what most people do in the United States through carriers.
Samsung is one of the largest electronics makers in the world but that doesn’t mean it doesn’t face competition in certain markets. The company faces stiff competition in India from the likes of OnePlus, Xiaomi, and other manufacturers from China. So now, users in India will be able to take advantage of Samsung financing.
Samsung financing offers users the ability to purchase that very expensive Galaxy Note10 on a payment plan. Admittedly, not everyone wants to finance a smartphone but it’s essentially what most people do in the United States. Here in the US, most users are leasing their phones through their carrier paying a little each month over one or two years. This is basically what Samsung financing is going to offer.
The financing product, for which Samsung has tied up with a local shadow banking firm, will help the South Korean tech group offer quick and easy loans to all prospective smartphone customers, Mohandeep Singh, Samsung India’s senior vice president for mobile business told Reuters in a telephone interview.
“We are giving finance to consumers who have not been served consumer finance in the past,” Singh said. He said the company would launch the product in 5,000 stores in 30 cities, and by the end of the year it wants to be in 10,000 stores in 100 cities.
Unlike Western markets, where smartphones are often tied to telecom company contracts, the bulk of phones in India are sold by retailers, with customers choosing wireless carriers and mobile plans on their own.
Samsung financing will initially kick-off with interest-free loans to its customers but the program may eventually include interest tacked on. So if you’re in India and Samsung financing is offered near you and you’re interested, it’s probably best to jump on it before those interest charges come into play.