With the understanding that mobile connectivity delivers significant economic benefits, reduces poverty, and transforms lives, augmented by the existence of a direct relation between Internet penetration and the growth of circular economy, M-KOPA, a fintech company that provides affordable smartphones and digital financial services was formed in 2011.
The company allows low, variable-income and underbanked customers to purchase electronic devices, especially mobile phones, on a pay-as-you-go (PAYG) basis. With operations in Nigeria, Ghana, Kenya, South Africa, and Uganda, the company has extended over $1.5 billion in credit to more than 5 million customers since its launch.
What are M-KOPA phones?
M-KOPA offers a range of premium to best-budget phones, mostly Samsung and Nokia 4G smartphones. Its latest models are the Nokia X20, Nokia C32, Nokia C22, Samsung A15, Samsung A05s, Samsung A24, Samsung A14, and Samsung A04s, and the older ones are the Nokia G50, Nokia C30, Nokia C21 Plus, Nokia G20, Samsung A13, Samsung A12, and Samsung A23.
To purchase these mobile phones from M-KOPA, a customer must visit any of their agents, the authorized retailers of M-KOPA phones, available countrywide in Kenya. They must show proof of identification, have an active M-PESA mobile money account, and make the required down payment, which varies from phone to phone.
When the customer makes the initial payment, which is typically a fraction of the total cost of the mobile phone, they are given a flexible financing option structured as instalment loans. These loans have fixed monthly payments ranging from Ksh50-110 over a set period of time, mostly between 1 and 2 years.
To encourage consistent payments for its mobile phones, the company uses a secure locking system embedded in the hardware, enabling the company to “lock” the smartphone if payment milestones are not attained. That means that the device no longer functions apart from making emergency phone calls and payment top-ups. But once a payment is made, the phone and all services are remotely unlocked again. This is the technology we will be looking at today;
What is the technology in M-KOPA Lipa Mdogo Mdogo Phones?
M-KOPA uses remote locking technology in its M-KOPA Lipa Mdogo Mdogo phones, which ensures not only security but also control and comprehensive monitoring of devices to encourage payments and avoid the costly process of repossession.
As an excellent safety feature and cutting-edge security solution, remote locking technology provides M-KOPA with a centrally managed endpoint management solution that allows them to lock or disable a device altogether without needing physical access when customers fail to pay their credit fee.
Aside from improving smartphone payment behaviour, the cloud-based security software fitted on the phones’ hardware also has a security feature designed to prevent the misuse of a device if it gets lost or stolen.
Can you unlock an M-KOPA phone?
Yes. Unfortunately or fortunately, most M-KOPA phones can be unlocked through a factory reset by pressing volume up and power down several times at the same time until the root menu appears for “Wipe data/factory reset.” This is because the remote locking technology is embedded in the phones’ hardware, and a factory data reset restores a device to its original system state by erasing all of the information stored on the device.
However, this practice is not encouraged as it is against the terms and conditions of M-KOPA.
