What is PAYGO?

Pay As You Go.  Pay as you use.  Bascially phone credit adeapted for equipment.  You pay and the equipment works for as as your credit lasts.

Why so interesting?

It allows suppliers and/or their banking partners to offer more credit, which makes the equipment easier to afford.  While the developed markers do not need more credit, growing economies where personal and small business cash budgets are tight, do.  PAYGO means they can get access to equipment such as solar, computers, small transport without saving up first, offereing collateral that they don’t have, or showing an established credit history.

How to do it?

Well, its complicated and expensive.  Basically if you are a distributor or manufacturer you need to learn financial services.  If you’re a bank, you need to learn technology and distribution.  Take a look at this and give me a call to explain

This image was first prepared by the author as part of an presentation for UNCDF CleanStart