In many countries around the world, people face two main barriers to owning a PC: the entry cost of buying a computer is too high and the fixed monthly payments associated with traditional financing are beyond their ability to pay- if they can get financing at all. And even in countries where consumer credit is available, many people are reluctant to incur the obligation of fixed monthly payments because they have unpredictable or variable incomes.
Popularity of Pay-As-You-Go Financing for Mobile Phones in Emerging Markets
In emerging markets, PC ownership remains limited with less than 10% of households owning a PC. In contrast, mobile phone ownership has taken off - 29% of people in emerging markets own a mobile phone. The availability of flexible, pay-as-you-go payment options has contributed to this growth - 74% of mobile phones in emerging markets are prepaid mobile phones.
Microsoft is introducing the Microsoft FlexGo technology platform to provide more people in emerging markets with purchasing options that are tailored to their needs. By removing some of the financial barriers to PC ownership, hundreds of millions of people in emerging markets will now be able to enjoy the benefits of computing.
