Bell-owned Virgin Mobile appears to be next to launch smartphone financing and axe its subsidy model, starting on May 12, 2020.
According to internal documents, the new financing model will be called ‘Sweet Pay’ (via MobileSyrup). Financing will allow customers to pay off a smartphone over 24 monthly payments with a 0% annual percentage rate (APR).
Virgin Mobile’s documentation says the debut of Sweet Pay will replace the existing subsidy structure. With financing, customers will be able to see separate payments for paying off a phone, separated from wireless costs.
After the device is paid off after 24 months, the financing charge is gone and customers just pay their monthly wireless cost.
Like other wireless carriers, various smartphones will be available for $0 upfront, while more expensive phones will require an upfront payment to ensure manageable monthly financing costs.
Virgin Mobile’s parent company, Bell, launched its device financing option called SmartPay last July. Back in January, Rogers and Fido moved to smartphone financing models only, ending its subsidy model. Only Koodo and Freedom Mobile still have subsidy models remaining, points out MobileSyrup, but as we all know that will most likely change at some point in time.