There are many good things about no contract carriers like Leap Wireless and MetroPCS. The biggest benefit is that you don’t have to sign a contract and you can cancel whenever you want. This flexibility is particularly appealing to those who do not want to be tied down to a long-term commitment, allowing them to switch carriers or plans as their needs change. Additionally, no contract carriers often offer more affordable monthly plans compared to traditional carriers, making them an attractive option for budget-conscious consumers.
However, the big downside to wireless carriers like these is that you have to pay the full purchase price of the handset up front. This can be a significant barrier for many people, especially when it comes to high-end smartphones.
High Upfront Costs
That means if you want something like the iPhone 5, you could pay as much as $500 upfront. That can be a lot of money to come up with for many people. The high upfront cost can deter potential customers who might otherwise be interested in the flexibility and affordability of no contract plans. This is particularly challenging for those who do not have the savings to cover such a large expense all at once.
To address this issue, both Leap Wireless and MetroPCS have announced that they are now offering handset financing programs. These programs aim to make it easier for customers to afford the latest smartphones without the burden of a large initial payment.
Handset Financing Programs
MetroPCS is working with Progressive Finance and BillFloat to offer financing options. Leap Wireless is also collaborating with Progressive Finance. These financing services require no credit check as long as the buyer has an active checking account that the finance companies can access for monthly payments. This makes the financing options accessible to a wider range of customers, including those with less-than-perfect credit scores.
Users can finance any combination of smartphone hardware and accessories totaling $200 and over. With this plan, users could walk in and get an iPhone 5 with the first month of service for only $105 out-of-pocket. This significantly lowers the barrier to entry for obtaining a high-end smartphone. Accounts paid within 90 days incur no interest charges, but the buyer can take up to nine months to pay off the balance if needed. This flexibility in payment terms can be very beneficial for those who need more time to pay off their purchase.
The introduction of these financing programs is a game-changer for no contract carriers. It allows them to compete more effectively with traditional carriers that offer subsidized handsets in exchange for long-term contracts. By providing an alternative way to afford high-end smartphones, Leap Wireless and MetroPCS are making their services more accessible and appealing to a broader audience.
In addition to the financial benefits, these programs also offer peace of mind to customers. Knowing that they can spread out the cost of their handset over several months can make the decision to upgrade to a new phone much less stressful. This can lead to higher customer satisfaction and loyalty, as users feel more supported and valued by their carrier.
Overall, the introduction of handset financing programs by Leap Wireless and MetroPCS is a positive development for consumers. It addresses one of the main drawbacks of no contract carriers and makes it easier for people to access the latest technology. As more consumers become aware of these options, it is likely that the popularity of no contract carriers will continue to grow.
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