PayJoy Inc, provider of consumer finance to the next billion via smartphones, has launched its compatibility program for smartphone original equipment manufacturers (OEMs), starting with agreements with four key smartphone brands in emerging markets: Transsion Group, TCL/Alcatel, D.Light and Hisense, building on existing compatibility with Samsung and LG.
These four smartphone brands achieved compatibility by incorporating PayJoy Access in their systems. PayJoy Access is free firmware technology developed by PayJoy to facilitate fast and efficient integration of PayJoy Lock, its industry-leading smartphone locking technology for OEMs.
Compatibility with PayJoy’s patented technology enables retailers to offer these smartphones on installment payment plans secured by PayJoy, thereby increasing market access and affordability for the billions of users who have yet to adopt a smartphone.
“By licensing PayJoy Access, these OEMs have shown a strategic commitment to expanding access to their devices for the next billion consumers, which will in turn increase OEM’s device sales,” Mark Heynen, PayJoy’s co-founder and CBO said.
“PayJoy continues to welcome additional OEMs to our compatibility process and look forward to additional compatibility announcements over the coming months,” Heynen said.
PayJoy Access enables compatibility with the PayJoy Lock, a patented and purpose-built app that facilitates finance for the underbanked consumer segment in developing markets by virtually “collateralizing” the device.
Additionally, the app informs the end-user when their next installment is due and options for paying. If a payment is missed, the device “locks,” limiting its functionality to emergency calls and communicating with the lender.By collateralizing the smartphone with Lock, PayJoy dramatically improves repayment rates, reducing costs to lenders who can pass the savings on to consumers, thus making smartphones more affordable.
Additionally, similar benefits apply to MNOs who wish to extend subsidy offers in the prepaid segment.
In Mexico, PayJoy uses Lock to offer its own monthly payment plans based on this technology and found the method so effective as to reduce its consumer default risk by 50 percent while enabling increased approval rates and with no late fees. This approach recently earned PayJoy a Net Promoter Score of 80.
PayJoy licenses Lock to lenders worldwide to improve their portfolios’ payments performance, most recently with leading institutions in 22 countries including Panama, Guatemala, Ecuador, Kenya, Nigeria, Senegal, Zambia, and Indonesia.
According to the company; additional commercial launches are expected later this year.
