Finance

Device financing rules and customer journey (Terrace Finance; Klarna in progress).

Overview

Financing is shown at checkout for eligible SKUs only.

This page is part of Ecommerce.

Device financing

• Financing is shown at checkout for eligible SKUs only.

• Split payments are supported (for example, plan charges on card and the device on finance).

• Integrated with Terrace Finance (available now) and Klarna (integration in progress).

• Financing is available only when device charges are ≥ $200.

  • Device charges include device price, shipping, and applicable taxes.

• New users:

  • purchase plan + device,

  • pay plan charges by card first,

  • then complete device financing in the Terrace Finance flow.

• Existing users:

  • are redirected directly to the Terrace Finance flow for device financing.

Customer financing journey

Journey

1. Customer selects Finance as the payment option.

2. Customer is redirected to Terrace Finance (hosted flow).

3. Customer provides:

   • email (OTP validation),

   • address,

   • SSN,

   • occupation and income.

4. Terrace Finance performs a soft credit check and matches the customer with available lenders.

5. Customer reviews offers, selects an offer, and completes:

   • card details (first payment),

   • bank details (future payments),

   • e-sign of the lender agreement.

6. On approval:

   • order moves to Order Processing → Order Confirmed,

   • customer is redirected back to My Orders.

Terrace Finance application statuses

Terrace Finance application statuses

Status	Message shown to end user
In process	Application is in process
Canceled by user	You canceled your application
Canceled by Terrace Finance	Application was declined
Application incomplete	Submit missing details
Pending signature	Signature required
Fulfilled	Application confirmed

Money flow and partner settlement

This section shows a standard MVNO ecommerce money-flow model. All figures and settlement timelines are indicative and should be confirmed during onboarding and commercial agreement finalization.

Outright purchase (card payment)

• Customer pays full device price at checkout via the brand’s payment gateway.

• The payment gateway settles funds to the platform (per merchant setup).

• The platform remits wholesale device cost and fulfillment fees to Vertex on the agreed billing cycle.

• The platform holds margin and service fees for periodic settlement (as applicable).

• Client brand revenue share is settled per the commercial agreement (as applicable).

Financed purchase

• Customer applies and is approved by the finance partner.

• The finance partner pays the platform the full device value upfront upon order approval.

• The platform settles with Vertex using the same model as outright purchase.

• The platform holds margin and service fees for periodic settlement (as applicable).

• Client brand revenue share is settled per the commercial agreement (as applicable).

• Customer repays the finance partner in monthly installments over the agreed term.

Add-ons and services settlement

Service	Payment method	Who collects	Who settles
Device insurance	Card (not financed)	Platform / payment gateway	Platform → Asurion
Trade-in credit	Applied as future credits to the customer’s bill	Asurion pays platform; platform applies credits	Asurion → platform (value + markup); platform → client share (if applicable)
Financing	Finance partner	Finance partner	Finance partner → platform (device cost)

Subsidy model

Some MVNO clients subsidize devices to drive acquisition and retention. In practice, device stores tend to perform best when the brand subsidizes devices.

Where the client brand subsidizes pricing (for example, a lower device price when bundled with a plan):

• The client brand funds the subsidy amount per device sold.

• Subsidy is tracked at order level and reconciled on a defined billing cycle.

• The platform invoices the client brand for total subsidy disbursed each period.

• Eligibility rules (SKUs, plan bundles, segments) are configurable per client.

Example

A device retails at $800. The brand subsidises $200, so customers pay $600. The platform invoices the brand $200 per eligible unit sold.

If a contract lock is required, it may require a separate OEM agreement and sale commitments.

Title transfer (financed purchase)

Financing typically follows a lease-style ownership model.

• Title is held by the finance partner (Terrace Finance or Klarna) for the duration of the agreement.

• The finance partner takes title at the point of fulfillment.

• Title transfers to the customer only after the final installment payment.

• On default or early return, title reverts to the finance partner, who manages device recovery.

• Where supported, early payoff triggers immediate title transfer on settlement.

Fulfillment and post-purchase

• Financing is activated post-order confirmation per partner terms.

• Orders are visible in My Orders after checkout.

Questions or clarification? Reach out to your respective account manager or email at [email protected]