PayJoy achieved $300M in revenue by allowing underserved individuals to use their smartphones as collateral for loans

Lerato Motloung, a mother of two employed at a Johannesburg supermarket in South Africa, faced a nine-month period without a mobile phone after hers was stolen, unable to afford a replacement. However, in February 2024, Motloung encountered a sign advertising PayJoy, a startup extending lending services to underserved populations in emerging markets. Through PayJoy, she was swiftly able to acquire her first smartphone.

Motloung joins millions of customers aided by San Francisco-based PayJoy since its establishment in 2015, with Motloung notably marking the company’s 10 millionth customer. PayJoy’s overarching 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.”

Transitioning to a public benefit corporation in the previous year, PayJoy exemplifies a company striving to effect positive change while also generating substantial revenue and operating a profitable business model. Distinguishing itself from other startups offering loans to underserved populations, PayJoy emphasizes its non-predatory approach.

“We meet customers where they are — even with no bank account or formal credit history, we create access to financial services and carve a path into the financial system,” asserted co-founder and CEO Doug Ricket.