The rise of “Buy Now, Pay Later” (BNPL) services has changed how consumers manage their shopping expenses, making purchases more accessible without needing traditional credit options. PayKoko has positioned itself as a leader in this space within Sri Lanka, offering customers the flexibility to split payments into three interest-free installments across 60 days. This guide provides a deep dive into how PayKoko’s installment plans work and how they benefit both customers and merchants.
What Is PayKoko?
PayKoko is a BNPL platform, allowing customers to make purchases today and spread the cost across multiple installments without incurring any interest. The service is designed to provide financial flexibility to users while minimizing the challenges associated with traditional loans or credit cards.
Key Features of PayKoko:
- 3 equal installments over 60 days, all interest-free.
- Instant approval with a simple registration process.
- Works with both debit and credit cards.
- Available at 500+ partner merchants across Sri Lanka for both online and in-store purchases.
- Encourages responsible spending with built-in credit checks and spending limits.
How PayKoko Installment Plans Work
Using PayKoko is simple and user-friendly. Here’s a step-by-step guide on how the process works:
Step 1: Register on the PayKoko App
Customers need to download the Koko app from the App Store or Google Play. Upon registration, users must provide basic information and link their debit or credit card to activate their account.
Step 2: Instant Spending Limit
Once registered, users are assigned an instant spending limit, which determines how much they can spend with PayKoko. To increase this limit, customers can upload additional documents, such as their ID, salary slip, or a utility bill.
Step 3: Make Purchases Online or In-Store
PayKoko allows users to shop at both online stores and physical outlets:
- Online: Choose PayKoko at checkout and pay the first installment at the time of purchase.
- In-store: Scan a QR code using the Koko app to complete the purchase and split the payment.
Step 4: Payment Breakdown
Customers pay the first installment upfront, and the remaining two installments are automatically charged over the next two months. The entire amount is interest-free, provided payments are made on time.
Advantages for Shoppers
PayKoko offers numerous benefits, especially for those looking to manage their cash flow effectively:
- Interest-Free Payments: No hidden fees or interest for users who meet their payment deadlines.
- No Credit Card Required: Traditionally, installment plans were only accessible with credit cards. PayKoko opens this option to debit card users.
- Instant Approvals: No lengthy approval processes—shoppers can start using PayKoko right after registering.
This approach provides financial flexibility, allowing consumers to make necessary purchases without worrying about immediate full payment.
Benefits for Merchants
Merchants partnering with PayKoko also gain significant advantages:
- Increased Sales: Offering installment plans encourages customers to spend more and reduces abandoned carts.
- No Financial Risk for Sellers: PayKoko assumes the credit and fraud risks, ensuring that merchants receive payments in bi-weekly cycles.
- Easy Integration: Both online and offline merchants can quickly integrate with PayKoko and start offering installment options to customers.
- Marketing Support: PayKoko provides technical and promotional assistance to boost merchant visibility and attract more customers.
Financial Inclusion and Responsible Spending
PayKoko emphasizes financial inclusivity by offering its services without requiring users to have a CRIB score (the Sri Lankan credit score). The app assesses repayment ability using non-traditional data points, such as transaction history, ensuring customers can manage their installments comfortably. The goal is to promote responsible spending while offering a safety net to users, so they don’t incur unnecessary debt.
BNPL and the Future of Shopping in Sri Lanka
BNPL services like PayKoko are shaping the future of e-commerce and retail by making flexible payment options more accessible. With over 300 merchants onboard and a fast-growing user base, PayKoko is poised to become a key player in the Sri Lankan market. The service bridges the gap between affordability and convenience, encouraging higher average order values and more frequent purchases from customers.
In the long run, the expansion of PayKoko’s services could also drive economic growth by supporting consumer spending while fostering financial discipline. Merchants who adopt this system benefit from increased conversion rates, ensuring more sales and fewer abandoned carts.
