PAYGO Integration for e-Cooking

• 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

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

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

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

• BURN Manufacturing
• Village Infrastructure Angels