PayJoy, the pay-as-you-go smartphone credit provider has joined hands with Vodacom Tanzania and Commercial Bank of Africa (CBA) to deliver affordable smartphone financing to people that could otherwise not afford it through offering affordable loans and alternative forms of credit scoring.
According to PayJoy’s CEO and co-founder, Doug Ricket, “Our technology enables Vodacom and CBA to offer installment financing options to customers who have no access to credit and so can’t afford a smartphone. This deal will put the internet and all the tools smartphones offer in the hands of more people in Tanzania, enabling growth that comes with having a more connected population.”
With this collaboration consumers will be able to apply for smartphone loans through M-Pawa, the revolutionary banking product for M-PESA customers that allows consumers to save and borrow money through their mobile phone. Once the consumer has been approved, they will be able to collect their new smartphone at more than 350 Vodacom retail stores across Tanzania. The smartphone will incorporate the PayJoy Lock, unique patented software which blocks smartphone apps in case of non-payment but still allows consumers to remained connected to the mobile network, make emergency calls and access M-Pesa for payments.
Vodacom and CBA introduced M-Pawa in 2014 and as of May 2016, M-Pawa had 4.8 million accounts, with TZS39 billion ($17.9 million) disbursed to consumers, typically for low value amounts. The PayJoy Lock enables use of M-Pawa for larger ticket items like smartphones.
Hisham Hendi Vodacom’s Chief Executive Officer for Vodacom Tanzania said: “This collaboration with PayJoy and CBA further demonstrates Vodacom’s ambition to support and accelerate the financial and digital inclusion for our 71 million customers in Africa. Collaboration with PayJoy represents a commitment to our purpose which is to connect everybody to live a better today and build a better tomorrow.”
PayJoy will allow Vodacom and CBA to expand and enhance their financial services to their 12.8 million customers via its lock and underwriting system which work together, collateralizing the smartphone and yielding behavioral data which allows us to improve loan performance.
PayJoy also teamed up with mobile distributor Allied Mobile to bring affordable smartphone payment plans to markets across the continent of Africa. Allied Mobile will use PayJoy Checkout to enable “pay-as-you-go” access to smartphones.
While sharing more details about the partnership, Jacqueline ColeCourtney, Allied Mobile Group CEO, stated:
“We are excited to work with PayJoy to extend our value-added service to include smartphone financing. Allied Mobile has operations across the fast-growing Sub-Sahara telecommunications market and is ideally positioned to capture growing needs of consumers. Making smartphones more affordable through manageable payment plans is one such need.”
The firm is hiring in South Africa.