Trustonic will be working with Sennco to help US retailers increase their revenues from smartphone sales. To that end, Trustonic will provide Sennco with locking technology that allows businesses to deactivate devices that get lost or stolen.
The technology discourages theft because it negates the resale value of a stolen device. It also reduces some of the risk associated with device financing. In that regard, customers with poor credit ratings are often denied a payment plan (and a phone) due to the high risk of non-payment. Trustonic’s locking technology allows retailers to take on more risk, since they will have the ability to deactivate the device if the customer does not fulfill the terms of the plan.
As a result, the joint solution will increase overall sales, and make it easier for retailers to collect on the phones that are in circulation. Trustonic estimates that as many as 30-70 percent of the customers in some markets are turned away due to poor credit, so a solution that lets retailers be more aggressive with financing plans could dramatically expand the potential base for smartphone devices.
“Once a phone leaves the retailer’s store, the seller has little control over whether they will receive a return on that investment,” said Sennco President Chris Marszalek. “Using Trustonic’s technology, we will be able to help our customers grow their financing portfolio with the peace of mind knowing that their assets and revenue streams are secure.”
“With device financing trends increasing across America, it’s time to work with the mobile industry to manage the entire smartphone lifecycle,” added Trustonic CEO Dion Price. “We look forward to the new opportunities it will bring to the US mobile market.”
Trustonic launched its Asset Lifestyle Protection Service in February of 2019, and has since provided asset security for major manufacturers like Samsung and LG. The company has reported that stolen smartphones cost mobile operators as much as $10 billion every year.