TRANSSION’s PalmPay powering smartphone access in Bangladesh

In Bangladesh, where smartphone penetration is rapidly growing but affordability remains a key barrier, access to finance is becoming a transformative tool. TRANSSION group (TECNO, Infinix and iTel) is pioneering a path in the smartphone market by leveraging its in-house fintech arm, PalmPay. Traditionally strong in African markets, PalmPay enables easy financing for South Asian consumers, especially in Bangladesh.

PalmPay operates in Bangladesh as a vertically integrated fintech platform within TRANSSION’s device ecosystem, enabling affordable smartphone ownership through structured financing. With down payments starting at 15%, monthly interest rates of 1% to 2% (reaching up to 20% annually in some cases) and flexible tenures of up to nine months, it caters effectively to low-to-middle-income consumers. Backed by partners such as bKash and Bangladesh Finance, PalmPay strengthens TRANSSION’s control over sales and financing, reinforcing its reach in Bangladesh’s offline-first market.

The strategic power of PalmPay

Unlike many brands relying on third-party EMI platforms, TRANSSION owns PalmPay, giving it complete control from financing to distribution. This vertical integration allows TRANSSION to create credit products tailored to Bangladesh’s low-income, cash-based economy. Initially limited to exclusive retail outlets, PalmPay financing has now expanded to general trade.

Reaching underserved consumers

PalmPay’s core audience is the aspirational, underserved segment in tier-two and tier-three cities, such as Gazipur, Narayanganj and Chattogram. Many in these areas, often garment sector workers, budget around BDT10,000 to BDT15,000 (US$80 to US$120) for smartphones but aspire to own models priced at BDT25,000 to BDT30,000 (US$200 to US$240). With PalmPay, they can make a down payment of BDT6,000 to BDT7,000 (US$50 to US$57) and pay the rest in six to nine monthly instalments. Currently, financing carries interest rates up to 20%, which may rise after July 2025 due to new national tax changes.

PalmPay is currently active in three key zones: Dhaka and its periphery, including Gazipur and Narayanganj; the North Bengal belt – Rangpur and Rajshahi; and the western zone covering Khulna and Barishal. These areas combine garment hubs with growing tier-two and tier-three youth markets.

Retail-first promotions and telco tie-ups

PalmPay thrives in offline retail, where most smartphone sales still happen. TRANSSION has prioritized retail-first visibility with co-branded in-store campaigns. Retailers do not receive an extra incentive to sell devices via PalmPay. Still, considering they do not bear default risk on loans, they are naturally incentivized to drive PalmPay to help expand customer affordability and increase the ASP. Key telco alliances with Grameenphone and Banglalink enable seamless, cardless EMI options, often bundled with airtime or data packs.

Impact on TRANSSION sub-brands

This embedded financing model is already showing results. Following PalmPay’s launch in the Bangladeshi market at the end of 2024, Infinix and TECNO saw their sales grow by around 20% in the first three months of 2025. But it has had a more limited impact on iTel, as 90% of its portfolio is in the sub-BDT15,000 (US$125) price range, whereas TECNO and Infinix operate in the BDT10,000 to BDT55,000 (US$80 to US$450) range. Consumers who couldn’t afford better models can now upgrade, which is deepening brand loyalty. Most buyers using PalmPay are aspirational users, those without upfront capital but with stable enough incomes to afford structured repayments.

Early default rates amid informal structures

While PalmPay’s financing model is gaining traction, default risk remains a concern in Bangladesh’s low-credit-visibility environment. Unlike informal retailer-led lending, PalmPay uses a device-locking system that progressively restricts phone functionality after missed payments, shifting enforcement to the platform level. Despite this safeguard, early default rates are estimated at 30% to 35%, indicating that technical deterrents alone will not entirely prevent non-repayment. TRANSSION’s partnership with Bangladesh Finance adds formal structure, but broader credit infrastructure and recovery mechanisms will be vital for the model to scale sustainably.

Competitors remain slow and fragmented

A few other brands are exploring financing models, but with limited scale and impact. Most Chinese vendors in Bangladesh lack in-house infrastructure and rely on third-party financing partnerships. OPPO and vivo have launched small-scale pilots with local partners in Dhaka and Sylhet to test consumers’ appetite for short-term, no-cost EMI. But these pilots remain limited in scope and reliant on external fintech platforms, offering little control over credit structuring, user data or repayment enforcement – areas where TRANSSION holds a clear advantage via PalmPay.

Xiaomi previously experimented with BNPL promotions via Daraz in 2022 and 2023, but recent insights suggest there is no ongoing collaboration or active financing initiative in 2025, with uptake historically below 1% during those campaigns. That said, Xiaomi is reportedly planning a new financing initiative, which could launch in the coming quarters as part of its offline channel refresh. Samsung offers 0% EMI through select financial institutions, such as IPDC and City Bank, but mostly on higher-end or end-of-life models priced above BDT25,000 (US$200). These offers are bank-led, not brand-exclusive, and primarily cater to higher-income segments.

The road ahead for easy financing in Bangladesh

PalmPay’s integration into TRANSSION’s retail strategy has redefined how affordability barriers are addressed in Bangladesh’s smartphone market. But even with growing adoption, the model comes with real risks, ranging from high default rates to limited consumer awareness of credit obligations. For other brands, especially those without an in-house solution like PalmPay, expansion into financing will depend heavily on third-party collaborations with fintech or lenders, often with less operational control and integration.

To build a viable and scalable financing model, brands must:

• Develop or partner on robust credit scoring systems tailored to low-income consumers.
• Invest in borrower education to build repayment discipline and financial awareness.
• Establish strong compliance frameworks and align closely with regulators and financing partners.

TRANSSION’s early lead comes from full-stack ownership, but as more brands explore this path, long-term success will hinge on building trust, managing credit risk and creating partnerships beyond short-term promotional offers.

Read more about Africa’s smartphone financing journey: Device financing: a catalyst for smartphone growth in Africa.