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How PayJoy built a $300M business by letting the underserved use their smartphones as collateral for loans
Lerato Motloung is a mother of two who works in a supermarket in Johannesburg, South Africa. After her phone was stolen, Motloung had to go without a
The company’s mission is to “provide a fair and responsible entry point for individuals in emerging markets to enter the modern financial system, build credit, achieve economic freedom, and access digital connectivity.” PayJoy is applying a buy now, pay-as-you-go model to the estimated 3 billion adults globally who don’t have credit by allowing them to purchase smartphones and pay weekly for a 3- to 12-month period. Ricket says that PayJoy can “enable cheaper credit and … reduce default rates” by using data science and machine learning to underwrite its loans to assess a customer’s creditworthiness.
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