Telefonica and Spanish financial services provider La Caixa have set up a joint consumer finance company, called Telefonica Consumer Finance, to enable Spanish customers to acquire mobile handsets and devices. The new company is 50 percent owned by each of the partners, with Telefonica acting as the sales partner and CaixaBank, via its FinConsum subsidiary, providing financing and overseeing operating procedures.
The move follows a 2012 agreement between the two companies, which allowed customers to pay for new mobile devices via up to 24 interest-free instalments included in their monthly phone bills. Since the launch of the Movistar Fusion package in October 2012 instalment sales have soared to over 700,000, prompting the two companies to develop their agreement into a joint finance company.
A paperless contractual procedure, using digital signature technology, is currently being set up at Movistar stores and should be ready by the year-end. La Caixa’s 13.8 million customers in Spain will be able to secure financing by showing their La Caixa card and providing their personal details.
