PayJoy, which provides credit to the underbanked, has pulled in a $20m debt financing.
Founded in 2015, PayJoy is a smartphone financing solution for the underbanked in the US and Mexico. The platform approves applicants without credit history or banking relationships, as it leverages unique underwriting processes.
Based in San Francisco, the company analyses an applicant’s mobile number, photo ID and Facebook account and makes the phone collateral, by using its secure locking technology. The platform is available in thousands of point-of-sales and gives retailers payment plan options for customers.
The financing was supplied San Francisco-based venture capital firm Arc Labs. Through the new financing, the company will look to fuel more financial inclusion and provide financing solutions across Mexico.
The company is hoping to support the whole of Mexico, with it currently offering monthly payment plans and third-party licensing in 31 states and to 1,600 merchants.
Arc Labs managing partner James Sagan said, “We’re excited to be partnering with PayJoy, and believe their unique technology will democratize access to smartphones by providing financing to borrowers previously excluded from the banking system. We’re honored to be working with the entire PayJoy team in achieving this important mission.”
Last year, the company collected $6m in a funding round from Santander InnoVentures and ITOCHU Corporation. The capital was raised to support the expansion of its operations through Latin America, Asia and Africa.
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