PayJoy has raised $20 million from Greylock Partners. The San Francisco-based startup enables consumers to purchase smartphones on installment payments and get cash loans. It does so by turning the smartphone into collateral through software that locks the phone when payments have not been made.
“We’re building technology to help people carve a path into the financial system,” Mark Heynen, the company’s co-founder and chief business officer, said in an interview. Globally, 1.7 billion adults do not have a bank account, but two-thirds of them own a mobile phone which could help them access financial services, the World Bank said in a 2018 report. Josh McFarland, a partner at Greylock, said he believes PayJoy’s technology and distribution network could help emerging markets unlock some of their economic growth.