Since launching in South Africa five years ago, rent-to-own smartphone service provider PayJoy has seen significantly more customers seeking smartphones on flexible payment terms.
The fintech firm says its customer base in SA grew 129% year-on-year in 2024 versus 2023, as more South Africans opt for its rent-to-own model, instead of taking their phones on contract or buying them with cash.
PayJoy is a global financial technology company that aims to expand access to smartphones. It operates a smartphone rental model in SA, supported by a growing network of sales points nationwide.
Customers who may not qualify for a smartphone contract can apply for a PayJoy smartphone using only a government-issued ID and a deposit, instead of undergoing a traditional credit check.
Phones are selected from a range of brands, and clients can choose a three-, six- or nine-month payment option, paying weekly or monthly.
The company says it is helping to bridge the country’s digital divide by making smartphones more accessible to those who would otherwise not be able to afford them.
It says the business model promotes financial and digital inclusion, while helping customers build credit histories and supporting job creation for more than 1 200 sales representatives across South Africa.
Deon Verster, country manager for SA, says in an era when smartphones are a gateway to opportunities, PayJoy’s local footprint expands month-by-month, signalling a tangible impact that smartphone-enabled access is delivering for South Africans.
“PayJoy serves over 17 million customers across South Africa, South America, Mexico and Indonesia − a number that continues to grow every day,” Verster notes.
“Factors contributing to this growth include high demand for affordable smartphone access supporting education, employment, healthcare and financial inclusion. The expansion of PayJoy’s national footprint brings access to more communities through additional sales points. The business model and inclusive access practices have also contributed to growth.”
If a customer misses a payment, the phone's functionality is temporarily locked until payment is made, with no late fees or repossession.
PayJoy says it is seeing over one million customer transactions each month, a clear signal that the rental model is working for the South African market.
Despite widespread mobile penetration across the African continent, research shows that only 47% of devices in use are smartphones, while 35% remain basic feature phones with limited functionality, Verster adds.
PayJoy has also introduced a credit service by turning a customer's smartphone into a form of collateral for a loan or phone financing. The service allows individuals with no credit history to apply for credit through the PayJoy app.
“PayJoy is helping to empower individuals and communities alike by enabling phone access, financial inclusion and creating employment.”
The company partners with retailers and shopping malls, bringing PayJoy’s solutions closer to communities through establishing nationwide kiosks.
It competes with the likes of Pepkor’s FoneYam smartphone rental service.
“Looking ahead, PayJoy continues to grow its footprint within South Africa, reaching more communities and making smartphones accessible to even more customers. Alongside this expansion, we are excited to introduce a range of new products in 2026, designed to meet evolving customer needs,” says Verster.
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