LatAm List – PayJoy, a US startup that develops smartphone technology to provide credit solutions in emerging markets, raised $20M from Greylock Partners, along with Union Square Ventures, EchoVC, and Core Innovation Capital. The investment will be used to expand into new markets, secure more partners, and develop new technologies.
PayJoy helps the unbanked purchase smartphones on installment payments and get access to cash loans by using smartphones as collateral. The company believes that making smartphones more affordable can be a way to promote financial inclusion, since many financial services are now available on mobile platforms.
“We’re building technology to help people carve a path into the financial system,” said Mark Heynen, PayJoy’s co-founder and Chief Business Officer.
PayJoy currently operates in more than 10 countries including Mexico and Guatemala. In most of these markets, the startup partners with retailers and credit providers to provide financing, such as Telefonica, Vodacom, and Orange SA. It will soon launch in six more countries in partnership with local companies, including Mutual in Brazil, Waynimovil in Argentina, Panacredito in the Dominican Republic, Omnipagos in Honduras, and COINFIN in Colombia.
“Credit is a major piece of the infrastructure needed to help the global middle class better their quality of life,” said Josh McFarland, Partner at Greylock, who believes PayJoy can help emerging markets unlock some of their economic growth.
Read more on US News.
