PayJoy Secures New Investment to Enhance Financial Inclusion in Emerging Markets

San Francisco-based PayJoy, a Public Benefit Corporation dedicated to improving financial accessibility for underserved communities, recently announced a new investment in its PayJoy Asset Fund (PJAF) from accounts advised by T. Rowe Price Associates, Inc. Although the exact size of the investment has not been disclosed, this move is expected to have a transformative impact on the lives of individuals in developing areas.

Empowering Customers Through Technology

PayJoy's mission revolves around promoting responsible financial practices, especially among those who have been historically excluded from traditional lending systems. According to the company's data, about half of its customers are accessing credit for the first time, while roughly a third are gaining access to smartphone technology. Both statistics illustrate the company's pivotal role in facilitating entry into the formal financial ecosystem.

Research from UC Berkeley highlights that financing through PayJoy has led to a 6% increase in household income for its users. This indicates that the company's services not only help customers access necessary tools for daily life but also enable them to contribute to the economy more meaningfully. Importantly, nearly 50% of PayJoy's clientele are women, many of whom depend on the flexibility of gig economy jobs accentuated by smartphone financing to support their families.

A Major Milestone for Financial Inclusion

CFO Bill Yialamas expressed excitement over T. Rowe Price's involvement, calling it a significant advancement in PayJoy’s quest to broaden access to credit. He emphasized that connecting individuals with the necessary mobile technology is vital for participation in the global economy. The investment will enhance PayJoy's capacity to offer credit to more customers, particularly across regions in the Global South where such opportunities are scarce.

The PJAF operates with a focus on generating substantial returns for investors while simultaneously working to increase credit availability in underserved regions. With over $250 million in assets managed, it stands as one of the largest funds focused on this field. The fund is structured to grow in tandem with PayJoy, aiming for over $1 billion in assets as the company's footprint widens.

The Role of T. Rowe Price

Samy Muaddi, who oversees Emerging Markets Fixed Income at T. Rowe Price, noted that mobile phones serve as a crucial entry point into a connected society, yet many individuals in developing nations struggle to afford them. He believes PayJoy’s innovative mobile security and machine-learning underwriting solutions represent a responsible pathway towards sustainable economic growth.

With an impressive portfolio encompassing more than $30 billion in emerging market securities, T. Rowe Price has established a solid reputation over its 30-year history of investing in high-growth markets. The firm's focus on rigorous investment research and critical inquiry aims to ensure superior outcomes for its clients.

Experienced Management Team

The PayJoy management team boasts over 50 years of collective experience in fields such as lending, risk management, and capital markets. Their backgrounds include esteemed institutions like Citigroup, Deutsche Bank, and UBS. This extensive expertise positions PayJoy to make impactful financial decisions as it continues to foster responsible lending practices.

About PayJoy

As a Public Benefit Corporation, PayJoy aims to provide fair opportunities for individuals in emerging markets to engage with the modern financial landscape. The company has financed loans totaling over $2.5 billion, impacting over 15 million individuals worldwide. With a commitment to expanding financial inclusion and accessibility to digital connectivity, PayJoy is actively working to improve the lives of underserved communities.

For further details, visit PayJoy's website.