PayJoy & Baobab+ partner to democratize access to smartphones in Senegal, Ivory Coast & Madagascar
Baobab+ and PayJoy have partnered to democratize access to devices and and content with high social impact, in Senegal, Ivory Coast and Madagascar. 
Baobab+, a subsidiary of the Baobab Group offers Pay-As-You-Go (PAYG) solar kits in rural Senegal, Ivory Coast and Madagascar. PAYG technology allows remote control of the product allowing a customer to make payments based on their income to activate the product and eventually becomes the owner. Clients who were previously too risky to lend to, will be able to gradually become eligible for financial products and services, thanks to PAYG as their first financial experience.
Working with CGAP, Baobab+ offers its customers digital nano loans, accessible instantly and without any guarantee at Baobab points of sale to increase financial inclusion in these markets. Baobab+ aims to enable 300,000 households to follow this pathway to financial inclusion in 3 years, especially people living in rural areas and currently financially un/underserved. By partnering with PayJoy, the firm gives its customer more value than just the solar kits it had been offering to its customers.

Founded in 2015, PayJoy uses innovative technology to block terminals remotely, enabling the sale of Pay-as-you-Go (PAYG) smartphones and tablets. PayJoy is working with brands such as Samsung, Vodacom or Telcel.  Baobab+ is taking part in this digital revolution by equipping thousands of homes with digital products with content that has a strong social impact and has already equipped more than 10,000 households through the branches of the Baobab network, these new offers are now accessible to all thanks to this new PAYG offer.
The deal will allow everyone to buy a quality smartphone and pay for it over several months! Two offers are currently available include an EDUCA tablet, with a selection of educational applications to promote children to learn and a BUSINESS tablet to help entrepreneurs optimize the performance of their business, thanks to an ultra-design and simplified digital cash register solution to record sales, manage inventory, or even track profit margins.
The two firms are also working on new offers focused on health, agriculture and education and will be available in 2019. Tablets and smartphones will also have the new Baobab application to access multiple financial services. The two firms expect this offer to also serve as a pathway to financial inclusion for clients who were previously ineligible for loans, including from microfinance institutions. With PAYG as their first financial experience, they will then become eligible for Baobab financial products and services.
In October, PayJoy, MTN Nigeria and mobile devices distributor, TD Mobile and Sterling Bank launched a device financing scheme to enable Nigerians from all walks of life own high-end devices by paying at flexible installments. PayJoy’s General Manager for Africa, Dominique Friedl said PayJoy’s mobile locking technology and data science is expected to enable just about anyone in emerging markets worldwide to qualify for smartphone financing and cash loans whether they have a salaried job or are running a small business.
Recently, PayJoy signed a $20 million debt-financing deal with Arc Labs to spread financial inclusion and alternative financing options nationwide in Mexico. PayJoy invented pay as you go mobile financing with its proprietary Checkout tool which underwrites the underbanked, and Lock technology which blocks access to apps on a phone, except for emergency calls, when a customer does not make a payment.

PayJoy is taking the entry point to economic inclusion with a smartphone one step further by inventing the phone equity line: after paying-off a smartphone with PayJoy, they often qualify for an additional $100 loan collateralized by the device.  Also, paid up underbanked customers usually attain an average credit score of 615 points, enough to apply and get approved for a credit card. PayJoy therein establishes a process to create financial identities and entrance to the formal financial sector for the base of the pyramid worldwide.
PayJoy plans to make its credit access ubiquitous in Mexico, where it currently offers its own monthly payment plans and third-party licensing in 31 out of 32 states and 1600 active merchants. The funding will help close the final gap in Mexico where 60 percent of the population lacks a bank account and only 13 percent have established credit.
PayJoy maintains the long-term goal of reaching 1 billion people in emerging markets. PayJoy is a team of 75 people with premier tech and lending experience from StanfordMIT, Wharton, Google, Facebook, Amazon, PIMCO, McKinsey, Prosper, and Merrill Lynch. PayJoy was founded in San Francisco and funded with over $50M in equity and debt capital from top fintech investors including Union Square Ventures.
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