By Rorisang Modiba
- Pepkor’s FoneYam phone rental service grew from 1.2 million to 2.3 million users by 31 December 2025, up by 92%.
- Slant Research found a phone worth R3,000 costs over R5,500 through FoneYam, about 85% more than the cash price.
Pepkor’s phone rental service FoneYam has grown rapidly but costs customers much more than buying phones outright.
The retailer said FoneYam had 2.3 million users by 31 December 2025. This is up from 1.2 million users a year earlier.
Many customers are renting a second phone after finishing their first contract. Pepkor said this has increased how long customers stay with the service by about 18 months.
FoneYam launched in 2024. It targets customers who want better smartphones but do not qualify for loans or cellphone contracts.
The service is part of Pepkor’s Fintech division. Revenue in this division grew by 25.4% to R4.8 billion.
Pepkor sells a large number of prepaid phones. During the 2025 financial year, Pep stores sold 9.2 million handsets. Ackermans and Dunns sold another 3.4 million combined.
Pepkor said these sales mean the group sells eight out of every 10 prepaid phones in South Africa.
However, analysts at Slant Research have raised concerns about the cost of FoneYam.
They found that customers end up paying much more than the phone’s cash price.
For example, a phone worth R3,000 can cost over R5,500 in total payments. That is about 85% more than buying the phone outright.
By comparison, a normal loan with the highest allowed interest rate would cost around 60% more than the cash price. The customer would also own the phone at the end.
With FoneYam, the phone must be returned after the rental period.
Slant Research said that while FoneYam helps people who cannot access credit, it is not an especially affordable option.
The service includes strict controls. It locks the phone if payments are missed.
By September 2025, the total value of FoneYam customers reached R984 million. This was more than three times higher than the year before.
Pictured above: A Pep cell store.
Image source: Pepkor
