PayJoy acquires select Finia AI assets to expand micro-business underwriting
The smartphone-financing company says Finia’s AI underwriting technology and data assets will help assess thin-file borrowers and underserved small businesses.
PayJoy announced October 12 that it had acquired select strategic assets from Finia AI, a Mexican fintech. The transaction includes AI-powered underwriting technology and data assets designed to assess individuals and micro-businesses with limited formal credit histories.
PayJoy said it plans to integrate the technology into its global platform as it expands beyond its existing smartphone-financing and credit-line products. The company says the acquisition will strengthen risk assessment for borrowers who may not have conventional bureau files or extensive banking histories.
For alternative lenders, the value of a thin-file underwriting system depends on more than predictive performance. The lender also needs to understand which data is being used, whether applicants can challenge errors, how the model performs across different groups, and what human review is available when the automated result is uncertain.
PayJoy did not disclose financial terms for the transaction, a revenue contribution from the acquired assets, or a timetable for specific new products. The announcement describes an integration and capability expansion, not a newly launched micro-business loan product.