Financed mobile phones increase income and promote financial inclusion in Brazil

summary
A study conducted by PayJoy revealed that 66% of low-income people in Brazil increased their income after purchasing a financed mobile phone, promoting financial inclusion and socio-economic mobility.

Access to financed mobile phones has become a turning point in the popular economy. A survey conducted by PayJoy, the fintech reference in credit for low-income people in emerging markets, with 2,000 people in different regions of the country, showed that more than 66% of Brazilians from categories C, D and E increased their income after purchasing the device.

The direct impact of mobile phones on the family budget is clear – more than 66% of those surveyed reported an increase in family income. Before the takeover, those earning more than R$2,500.00 were the minority, representing 28.6% of those surveyed. After purchasing a smartphone, this share increased to 53.9%, which indicates an important progress in the income profile. The group that had an income of up to R$1,000.00 decreased from 26.2% to 7.9%, while the group that had an income between R$1,000.00 and R$2,500.00 decreased from 45.2% to 38.2%.

In the view of Wagner Mendonça, Director of PayJoy, for many, having a mobile phone represents not only the opportunity to have their first device, but also their first experience with formal credit, revealing the extent of financial exclusion in the country. “Financing the purchase of smartphones has become the key to access: it opens doors to social mobility, connects people to new forms of work and brings thousands of Brazilians into the financial system for the first time. This is proof that assets used daily can also become a turning point in a person’s economic path,” says Mendonça.

Financial inclusion

The survey also revealed that mobile financing was the first time 69.9% of people requested loans from a financial institution, with more than 96% of participants considering this financing important and having a significant positive impact on their lives.

“Many reported that access to a smartphone has become essential for organizing tasks, maintaining contact with clients and exploring different forms of work, whether in small businesses, independent activities or informal services,” Mendonça explains.

“When a financed cell phone reaches segments of the population that were on the margins of the financial system, the impact goes beyond individual achievement. It moves entire communities, increasing the circulation of income in popular places. The idea of ​​PayJoy is to be a vector of this movement and show that access to a simple resource can lead to big changes,” the CEO concludes.