Despite the directive's goals, Estonians show little interest in reintroducing devices back into circulation, according to a survey conducted this summer in Estonia. "54% of Estonians left their last smartphone, which they stopped using, just sitting in a drawer. However, many of these smartphones are still in good condition and usable. If people rented phones instead of buying them, it would ensure that the device is reintroduced into circulation," said Inbank's Head of Business Development, Piret Paulus.
Since last fall, Inbank, in collaboration with iDeal, has offered rental services for Apple smartphones and laptops. Recently, in partnership with ONOFF, Apple and Samsung smartphones and tablets have also been added to the list of rentable devices. According to the Head of Business Development at Inbank, the rental service for electronic devices is primarily a convenience service, allowing customers to rent a device for a desired period with a fixed monthly fee instead of purchasing it. "Renting is an affordable way to access the latest devices, and that is why the service is gaining popularity. Additionally, rental is cheaper than buying the device, as the customer only pays for the period they actually use the device. The devices have residual value, meaning that the customer never pays the full price of the device during the rental period," explained Paulus, adding that rental devices are generally covered by insurance, which makes their use worry-free for consumers.
Renting is cheaper than buying a device
The rental period is closely tied to the planned usage period of the device. For computers, a 2-3 year rental period is more popular, as users typically don't want to change computers every year. For smartphones, shorter rental periods are also considered, as many users want to upgrade to a newer model, for example, when a new iPhone is released. The prices for smart device rentals range between 30-50 euros. Since the monthly rental fee is lower compared to installments, depending on the device and rental period, monthly payments range between 25-50 euros. Furthermore, the rental service allows customers to rent additional accessories and services while still maintaining a lower monthly fee, making the service more affordable than buying an expensive device upfront. "Renting is not a credit product, which is why it appeals to a broader target audience and to customers who prefer to pay monthly but do not want to sign a leasing or loan agreement. Low monthly fees make the offer attractive to new consumers, such as students. Additionally, rental devices with insurance packages are often rented for school-age children, who are more likely to have accidents with devices," explained Paulus.
Reusing devices reduces CO2 emissions
The growing popularity of the circular economy mindset also supports the case for renting. Each year, more people strive to make environmentally friendly consumer choices. Rental services mean that devices always get a new life and don't just sit in drawers, turning into waste after the first user. For example, in the smartphone segment, we see that consumers are increasingly adopting the rental model—67% of Inbank Rent's rental portfolio consists of smartphones. Piret Paulus added that small consumer electronic devices, such as mobile phones, tablets, and laptops, hold great value for the circular economy, as they contain various materials and critical raw materials that can be recycled or reused with effective waste management. "Therefore, anyone who directs devices for reuse, either independently or through a rental service, helps reduce the CO2 footprint," emphasized Paulus, adding that the rental service's potential in the future is even greater considering environmental impacts. "It is also possible to rent other household or electronic devices—such as coffee machines, vacuum cleaners, robotic lawnmowers, and so on."
