PayJoy Secures $140M to Supercharge Emerging Market Credit

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If there’s one truth about financial inclusion in emerging markets, it’s this: access to credit begins with access to a smartphone. That’s the thesis PayJoy has been building on for nearly a decade—and this week, the US-based fintech added serious fuel to its expansion plans.

PayJoy announced a $140 million corporate debt facility from funds managed by Neuberger Berman, marking one of its largest financing rounds to date. Beyond the headline number, the funding reinforces a growing trend: global investors are doubling down on alternative credit models designed specifically for underserved markets across Latin America, Africa, and Asia.

So what does this move signal for the future of device financing, embedded credit, and emerging-market lending? Let’s break it down.

A Strong Vote of Confidence

The new debt facility is aimed at geographic and product expansion, according to the company. PayJoy’s footprint already spans multiple continents, and it recently entered Indonesia through a partnership with Bank Sampoerna—a signal that Southeast Asia is becoming a key region for the next stage of growth.

This facility isn’t just about scaling a device-financing product; it’s a broader push into point-of-sale (POS) financing and credit-card offerings, including the PayJoy Card, which launched in Mexico last year. That card gives users the ability to make everyday purchases—both in-store and online—using the same underwriting engine PayJoy originally built for smartphone installment plans.

What’s notable is the type of backing PayJoy is receiving. Neuberger Berman, with $558 billion in AUM, has supported PayJoy since 2022 through its Specialty Finance business. The continued commitment suggests two things:

1. The credit performance of PayJoy’s portfolio is strong and predictable.

2. Investors believe this model can scale profitably in markets that traditional banks have historically deemed too risky.

Other backers, including T Rowe Price, also doubled down this year with an investment into the PayJoy Asset Fund—another signal that institutional investors see durable returns in this niche.

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The Bigger Story: Smartphone-Driven Financial Inclusion

At the heart of PayJoy’s business is a simple but powerful premise:
A smartphone is the gateway to digital identity, digital payments, and digital credit.

Yet, for hundreds of millions of consumers in emerging markets, purchasing a smartphone upfront is financially out of reach. Local lenders often lack sufficient data to assess creditworthiness, while traditional device-financing options are scarce or prohibitively expensive.

PayJoy solved this problem by using smartphone-based collateral technology and alternative data. Their proprietary “Lock” technology allows customers to take home a phone and pay over time—with the device itself ensuring repayment compliance. With this model, PayJoy has been able to responsibly extend credit to people who have never borrowed formally before.

The results?

• 17 million customers served globally

• Rapid expansion across three continents

• Breakout adoption of PayJoy’s credit card and POS financing products

• A projected $650 million in revenue and $110 million in profit by the end of 2025

These are numbers most fintechs dream about—particularly those operating in emerging markets, where scaling profitably is notoriously difficult.

Why This Matters for the Fintech Ecosystem

Several broader industry dynamics make this announcement worth paying attention to:

1. Alternative underwriting is going mainstream.

PayJoy’s model illustrates that non-traditional credit scoring—rooted in device usage patterns, behavioral data, and embedded collateral—can produce institutional-grade credit performance. As this becomes more common, we may see a wave of new consumer credit products designed for underbanked populations.

2. Credit cards are the next frontier.

The launch of the PayJoy Card signals that once a lender earns trust (and repayment history) through device financing, users are eager for additional credit lines. It’s the same “land and expand” strategy that propelled neobanks, but applied to emerging markets with a high unmet need for revolving credit.

3. Investors are returning to fintech—selectively.

After two years of cautious capital deployment across fintech, strategic debt facilities are re-emerging as a preferred tool for financing portfolio growth. With predictable economics and asset-backed structures, companies like PayJoy are well-positioned to raise large facilities without diluting equity holders.

4. Global financial inclusion is shifting from narrative to measurable impact.

Serving 17 million customers is not a pilot test—it’s demonstrable scale. And when mainstream institutions like Neuberger and T Rowe Price get involved, it sends a signal that inclusive lending is not only good for communities, but also commercially viable.

What to Watch Next

As PayJoy deploys this new capital, the key areas to keep an eye on are:

• Expansion across Southeast Asia, where smartphone adoption is booming

• The performance of the PayJoy Card portfolio, a crucial indicator of the company’s ability to move beyond device-secured lending

• New regulatory partnerships, particularly in markets where credit infrastructure is still developing

• Whether other fintechs replicate PayJoy’s model, especially in regions like West Africa and South Asia

If PayJoy succeeds, it could become a blueprint for a new class of emerging-market lenders—ones that start with a smartphone but ultimately provide customers with a full suite of financial tools.