How is PayJoy Financing Smartphones in the Philippines?

San Francisco-based financial services provider PayJoy has announced its first expansion into the Philippines, making the huge archipelago its eighth global market as it continues to widen its reach across emerging economies.

The company, which has built something of a reputation for offering innovative credit solutions to under-served populations, is now positioning itself to meet the growing demand for affordable smartphone financing in the country.

Turn on the subtitles and watch this video of Lorena, a PayJoy customer, to understand how PayJoy's financing model works:

The context of PayJoy's expansion in the Philippines

Smartphone penetration in the Philippines has surged by 113% over the past four years – a significant uptick in such a short time. This recent growth in demand has created fertile ground for PayJoy’s business model, which allows customers to access smartphones and financing without traditional financial documentation.

According to PayJoy’s Philippines Country Manager, Rene Payan, the company has seen "unparalleled" demand for its services in the local market. "We have seen a swell of commercial partners eager to bring our service to their customers," Rene says, emphasising that PayJoy’s early traction in the Philippines reflects a broader need for financial inclusion in the region.

This rapid growth is being supported by partnerships with major Filipino retailers such as Comworks, MX MemoXpress and Jr MX MemoXpress. These partnerships have allowed PayJoy to roll out its smartphone financing services across the Philippines at great speed, with plans to expand to all major islands within the next two to three months.

What is PayJoy offering Filipinos?

While the initial offering focuses on smartphone financing, Rene hints at the company's broader ambitions. He says that PayJoy is also looking to introduce a credit line and other credit services in the near future.

The aim is for these products to cater to individuals facing challenges accessing traditional banking services, such as those in informal employment sectors.

"Many of our customers have informal jobs or are in a position where they face difficulties providing proof of a steady income or employment, like childcare or college grads," Rene explains. "Unlike others, PayJoy eliminates this barrier, offering financing options without requiring such documentation."

"Democratising access to the modern financial system": PayJoy's approach

PayJoy’s approach hinges on its own patented technology, which uses smartphones as collateral, alongside advanced machine learning, data science and anti-fraud tools to minimise risk and make financing more accessible. By doing so, the company aims to lower the cost of credit and qualify more customers than traditional lenders that tend to erect more barriers to financing.

With a track record of delivering billions of dollars in credit to over 12 million customers worldwide, PayJoy has doubled its customer base in the last two years and remains strongly profitable. The company’s expansion into the Philippines is seen as a key part of its strategy to extend financial services to under-served populations in emerging markets.

"The demand here has been nothing short of extraordinary," Rene says, highlighting that the Philippines represents a significant opportunity for PayJoy. "We’re not just providing a product, we’re democratising access to the modern financial system."

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