CCA just launched the Principles for Responsible Carbon Finance in Clean CookingDiscover the Principles

PAYGO Integration for e-Cooking

Investor ResourcesPAYGO Integration for e-Cooking
What is it?
  • Pay-as-you-go (PAYGO) is a financing model that allows farmers to invest in their farms in installments, using the savings the system generates
  • In May 2019, ATEC* partnered with Angaza, a leading PAYGO software provider to allow poor, rural customers to pay for ATEC* products over time
  • Farmers need to undergo a preliminary credit assessment check by ATEC’s financial team to qualify
Gain Creators

For the company:

  • PAYGO integration will increase global scalability of ATEC* by tapping into existing PAYGO distributors
  • Trials have seen a doubling in lead conversion rates
  • Increases ATEC’s market size by making the product more accessible to lower income households

For the customer:

  • Allows farmers to pay off the system in manageable monthly instalment payments of $15-30 per month for up to 2.5 years
  • Farmer net income increases by an average of $43 every month, meaning that they are cash positive even while paying off the biodigester system
  • If the system is paid off in the first 12 months, the customer gets a 5% discount
Pain Relievers

For the company:

  • ATEC’s collaboration with Angaza means they benefit from their partner’s experience in PAYGO payment management and processing in the solar industry; helping ATEC* to execute customer credit checks and loan monitoring
  • Reduces the need for customers to access finance via MFIs in order to make a purchase

For the customer:

  • Small-scale farmers’ inability to afford the upfront purchase price
  • Easy and flexible monthly instalments via mobile money
  • Better assessment process, compared with traditional microfinance institutions. No interest, no collateral requirements
Related Innovators

Other companies with a service line of PAYGO e-cooking appliances include: