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PayLater: Uganda’s online shop that allows installments 

 Aaron Kasozi PayLater CEO

Aaron Kasozi PayLater CEO

Many young corporates harbour dreams that would satisfy their heart’s desires. They would like to have nice cars, trendy phones, beautiful TV sets, durable furniture, name it!

But their meagre salaries are only enough for their daily essential needs. So, they keep dreaming!

However, PayLater Uganda has come to make these dreams a reality by introducing an online buy-now-pay-later model of property acquisition.

Started in 2021, this e-commerce platform has made it easy for Ugandans to purchase commodities ranging from electronics to kitchen appliances to smartphones to furniture, car tyres to beauty products at their own pace and convenience.

“It is a fact that most Ugandans cannot afford to buy genuine commodities in one go. So, we introduced this digital lease-to-own platform where they can pay in installments and acquire the property of their dreams,” says Aaron Kasozi, the PayLater CEO.


Kasozi says that they have about 15 approved suppliers of genuine branded products. So, if someone wants a product, they just visit www.paylaterug.com  where all product categories are listed. 

The customer just needs to create an account, generate password and then apply for a product of their choice. Then the system picks customer details such as employment, how much they earn, next of kin, residential address, among others.

“Once the application is received, we have to vet the customer through the Know-Your-Customer system where they are asked for a copy of national ID, bank statement and other documented income sources and work ID. If a customer passes the credit rating process, then we can go to the next step,” he says.

Once vetting is done, the customer is contacted and written to formally to tell them whether they qualify for a product or not.

“If they qualify, we sign a contract with the client and we engage the supplier and the customer pays the initial deposit. We break down the value of the product into six equal installments to ensure that the client pays up within six months,” Kasozi says, noting that only digital payments are accepted through FlexiPay, Visa, Mastercard and mobile money. They don’t accept cash at all.

Kasozi further explains that they work within a 30% rating whereby if someone earns Shs 1m per month, they should only qualify for a product where they will need to make monthly remittances of Shs 300,000.

To reduce risks, Kasozi says they work hand-in-hand with the credit reference bureau but also mainly focus on people in employment where due diligence can easily be done. So far, more than 300 people have been able to own different products through this platform.

“It is very promising. We have had over 190,000 website hits and every month we get over 800 applications. Unfortunately, most of them do not qualify,” he said, before complimenting the 40Days40FinTechs initiative for extending a helping hand to startups that normally do not have the resources for marketing, customer education and awareness.

40-Days 40-FinTechs

PayLater is the 11th participant in Season Three of the #40Days40FinTechs initiative that seeks to shine a light on the unique stories about innovations that are enabling ever more people to join the digital economy space.

The initiative is run by HiPipo in partnership with the Level One Project, Mojaloop, ModusBox, and Crosslake Technologies with support from the Gates Foundation.

According to the HiPipo CEO Innocent Kawooya, initiatives such as PayLater are testament to the rising cases of adoption of online trading and other digital financial services.

“PayLater is a well-thought-out initiative because it touches the nerve of many young people. Many people are looking out for genuine products that they can acquire conveniently and PayLater provides just that,” Kawooya said.

He further called on digital innovators and FinTechs around East Africa to embrace 40 Days 40 FinTechs as Season three covers physical destinations in Uganda, Kenya, Tanzania, Burundi and Rwanda.


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