Smartphone affordability in South Africa is the focus in this edition of the Business Day Spotlight, specifically PayJoy’s flexible rental and ownership model.
Listen:
PayJoy is a financial technology (fintech) company that offers smartphone financing to underserved consumers in emerging markets, including South Africa.
The service enables consumers to buy a smartphone with a small deposit and pay the remaining balance over three, six or nine months.
Durandt says the company uses high-level credit risk algorithms, connected to TransUnion, to assess a customer’s risk and affordability.
Globally, PayJoy has a customer base of more than 20-million. Its South African operation has grown to about 2-million customers in four years.
Gavaza and Durandt discuss smartphone buying trends in South Africa, PayJoy’s business model, alternative credit scoring and device penetration in Africa.
The most significant market segment for PayJoy is devices priced between R2,000 and R3,500. The company offers phones with a price tag of as much as R15,000, though that range accounts for a very small portion of sales.
Producer: Demi Buzo
Business Day Spotlight is an Arena Podcasts production.
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