Understanding Koko Pay (Buy Now, Pay Later) in Sri Lanka 🇱🇰

Koko is one of the leading "Buy Now, Pay Later" (BNPL) services in Sri Lanka, allowing customers to split their purchases into interest-free payments. Here are the most frequently asked questions about shopping at Koko partner stores.

1. How Koko Works

Q: What is the core mechanism of Koko Pay?

• A: Koko allows you to split the total cost of a purchase into three equal, interest-free installments (known as "Pay in 3"). You pay the first installment (1/3 of the price) at the time of purchase, and the remaining two installments are automatically charged to your linked card every 30 days over the following 60 days.

Q: Is Koko truly interest-free? Are there any hidden fees?

• A: Yes, for the customer, it is 0% interest if you pay on time. There are no processing fees or hidden charges applied to the purchase amount itself.
• Warning: The only fee you will be charged is a late payment fee (usually LKR 1,500) if you miss a scheduled installment payment.

Q: Can I use my Debit Card or do I need a Credit Card?

• A: Koko is widely popular because it works with both Debit and Credit Cards issued by local banks. This makes the installment facility accessible to a much broader customer base than traditional credit card-only schemes.

2. Shopping and Partner Stores

Q: Where can I use Koko Pay in Sri Lanka?

• A: Koko is accepted by over 2,500 local merchants, both online and in-store. Partner categories are extensive and include:
• Fashion and Clothing (e.g., ODEL, NOLIMIT)
• Electronics (e.g., Mobitel, other device stores)
• Jewellery and Watches (e.g., Wimaladharma & Sons)
• Health and Wellness (e.g., Supplement Factory)
• Furniture and Home Goods

Q: How do I make a payment with Koko in a physical store?

• A: The process is simple:

1. Go to the counter and state you want to pay with Koko.
2. Open your Koko app and use the Scan QR feature.
3. Scan the Koko QR code displayed at the cashier.
4. The installment plan will appear. Tap to confirm and pay your first 1/3 installment.

Q: Does Koko apply to all products in a partner shop?

• A: While Koko is generally available store-wide, the merchant may have minimum or maximum purchase values. It's best to confirm the eligibility with the cashier for high-value items or items that are already heavily discounted.

3. Eligibility, Limit, and Payments

Q: Who is eligible to use Koko Pay?

• A: To be eligible, you must:

1. Be at least 18 years old.
2. Have a valid National Identity Card (NIC) or Passport.
3. Have a valid mobile phone number and a local billing/shipping address.
4. Own a valid Debit or Credit Card to link to the app.

Q: How is my spending limit determined?

• A: Koko grants an instant pre-approved limit upon registration. You can increase this limit (up to LKR 200,000 or more) by uploading verification documents like your NIC, recent salary slip, and a utility bill through the app.

Q: What happens if I can't pay an installment on the due date?

• A: Koko allows customers to reschedule payments for free a limited number of times per year. If you fail to make a payment on time without rescheduling, a late payment fee (typically LKR 1,500) will be added to your outstanding balance.