Alibaba’s Daraz ventures into fintech with Koko

Alibaba’s Daraz, understanding the nature of the economy and the new norms of day-to-day life, has launched Koko, a “Buy now, pay later” mobile app-based payment platform.

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, Daraz said in a media release.

Koko utilises 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,
 the release said.