Alibaba’s Daraz ventures into fintech with Koko, Buy now pay later!
Colombo, 07th September 2021:The act of making payments has changed dramatically over the years. With the onset of the pandemic, businesses have been forced to reinvent their methods of transacting. In an increasingly contact-less era, Koko is the latest innovation in payment methods. Understanding the nature of the economy and the new norms of day-to-day life, Alibaba’s Daraz launched Koko, a “Buy now, pay later” mobile app-based payment platform in 2020.
Koko is revolutionizing the way you shop and make payments through their concept of “Buy now, pay later”. By providing consumers with an easy, interest-free payment plan, Koko empowers customers to access and purchase the items they want and need while managing their finances during these troubling times. Payable in three easy interest-free instalments, Koko is completely free for customers who pay on time – helping people spend responsibly without incurring interest, fees, or extended debt.
Koko utilizes an AI-based decision engine to score consumers’ repayment ability, thereby mitigating fraud. Banks have also discovered a growing segment of creditworthy consumers. With Koko, the possibilities are endless and it appears to be a reliable method of payment in today’s day and age.
The “Buy now, pay later” phenomenon is changing the way people pay, across the world. With Koko, Daraz Group has harnessed this groundbreaking initiative and selected Sri Lanka as the first country to launch it, within the region. There are no holds on the monthly payment method, through either a debit or credit card, allowing consumers peace of mind while they transact securely. Unlike traditional credit card plans, Koko doesn’t hold the full purchase amount, but instead allows payments to be split into thirds and repaid every 30 days. In addition, there is no annual fee, with late payment fees only incurred if a payment is missed. As due payments are paid automatically, consumers have a hassle-free experience.
Koko presents multiple opportunities to their consumers, the chief of which is the easy management of cash flows whilst enjoying flexibility in making payments. The accompanying financial wellness and control cannot be overstated. Furthermore, the ability to expand their consumer reach, increase basket size and drive sales are among the benefits of Koko, to merchants. Removing the burden of collecting cash on delivery, has also facilitated safety to both consumers, merchants and delivery partners as people adjust to the norms of life in a pandemic.
Acknowledging the role of Daraz as the leading e-commerce platform in South Asia, Rakhil Fernando, Managing Director of Daraz stated, “Koko is our group’s first foray in an external fintech product and it was built entirely in-house within our innovation lab in Sri Lanka. The benefits of Koko are indisputable. It was increasingly evident that a stance had to be taken on minimizing the usage of cash, while simultaneously providing consumers with a way to manage their finances comfortably. Through Daraz, Koko ushers in this new age of ‘Buy now, pay later’ in the region, forever changing the payment landscape in Sri Lanka. We believe that given our deep understanding of e-commerce in Sri Lanka and other key markets, the introduction of this payment scheme is set to benefit both consumers and merchants. Our platform has consistently worked towards the empowerment of consumers and merchants, as well as SMEs. With Koko, all these stakeholders unlock the potential to grow from strength to strength.”
Over 200 online and offline active merchants now accept Koko as a payment method, across various categories including fashion, electronics, health and fitness, cosmetics and so much more. The ease of access online via e-commerce websites or social media websites as well as in-store for physical stores once travel restrictions are eased, make Koko your ideal shopping partner. Download the app and register, following the simple step-by-step process. Get instant approval to a spending limit that’ll get consumers started within minutes of downloading.