By Rorisang Modiba
- FoneYam lets you rent a smartphone for 13 months with no credit check, but you pay 30% of the phone’s price upfront before you leave the store.
- Miss a monthly payment and FoneYam locks your phone remotely. You cannot use it again until the outstanding amount is paid.
More than two million South Africans are now renting their phones through FoneYam, Pepkor’s smartphone rental service available at PEP, Ackermans and Dunns stores. If you are thinking about signing up, here is what the deal actually looks like.
You do not need a credit check or proof of income. You need a valid ID, a selfie and money in your pocket on the day you collect the phone. FoneYam requires an upfront payment of 30% of the phone’s retail price before you walk out of the store. A second payment is due seven days later. After that, you pay monthly instalments for 12 months.
When the 13 months are up, you can buy the phone outright for between R15 and R165, depending on the device. FoneYam says 92% of customers choose to do this. If you do not want to keep it, you return it to the store and can apply for a new rental.
The insurance that comes with every rental covers theft, loss, death, disability and loss of income. That cover matters. But it does not protect you from a missed payment.
If you fall behind on your monthly instalment, FoneYam locks the phone remotely using software installed on the device. You cannot make calls, send messages or use data until the payment is made. The company says it will offer an extension if you contact them before you miss the payment.
FoneYam added 1.3 million new accounts in the six months to March 2026, a 32% increase on the same period last year. The rental book now sits at R2.6-billion, up from R1.7-billion a year ago. Most new customers came through PEP stores, which recorded 750,000 new rentals. Ackermans added 531,000 and Dunns, which recently joined the programme, added 35,000.
Pepkor’s financial services division, which includes FoneYam, grew operating profit by 63.4% to R691-million in the same period.
Pictured above: Pepkor says demand for affordable cellphone rentals is growing fast across South Africa.
Image source: Pepkor/Foneyam
