SurgePays, Inc. (NASDAQ: SURG) has signed a non-binding letter of intent with All Prepaid, LLC, doing business as LowWeeklyPayments (LWP), to form a joint venture focused on a smartphone rent-to-own program targeting subprime and underserved consumers.

Under the terms of the letter of intent, SurgePays will hold a 51% interest in the joint venture and serve as its Managing Member, while LWP will hold the remaining 49%. The venture will operate through LWP-SURGE, LLC, a Wyoming limited liability company formed on September 2, 2026.

The program allows consumers to take home a smartphone under a rent-to-own agreement with low weekly payments, with no credit history or bank account required. More than 100 dealers have been onboarded, and the companies are targeting 500 locations by year end.

The joint venture will combine SurgePays' retail dealer distribution network and field enablement with LWP's rent-to-own platform, approval matrix, and in-store payment technology.

"Adding the LWP platform to our product suite has driven some of the best store acquisition results we have seen, helping us onboard more than 100 dealers already," said Derron Winfrey, President of Sales and Operations at SurgePays.

The parties are working to finalize a definitive operating agreement. The letter of intent is non-binding, and there is no assurance that a final agreement will be reached or that the joint venture will be completed on the described terms.