PayJoy – Smartphone credit with device as collateral
Smartphones are collateral. PayJoy thinks so.
The San Francisco-based company lets people in emerging markets buy a smartphone in instalments and uses the handset itself as collateral through its own lock software. If a borrower stops paying, the phone can be locked remotely. If they repay on time, they build a positive credit history.
Since launching in 2015, PayJoy has served around 19 million customers across Latin America, Africa, and Asia, with 79% saying it improved their financial well-being. On 3 December, the company secured a $140M corporate debt facility from Neuberger Berman to accelerate its geographic and product expansion. Revenue is expected to reach $650M in 2025 with about $110M in profit.
Founder Doug Ricket, formerly of Google Maps, and co-founder Gib Lopez have built a profitable loan book by combining fintech, hardware controls, and alternative data. Earlier backers include T. Rowe Price and Union Square Ventures. With a new PayJoy Card live in Mexico and fresh moves into Africa, PayJoy looks ready to become the go-to financing engine for the next billion smartphone users.
We handpick one fintech startup every day. Do not miss the next one.
Would you finance your phone if it unlocked access to credit?
#fintechoftheday #lending #emergingmarkets #smartphones
Register and become part of the FinTech Builders Community. Join fellow innovators and see the value of being part of our community!
