Jesse Moore and M-KOPA’s Pay-As-You-Go Approach to Essential Services

For many households and small businesses, the cost of paying upfront for a smartphone, solar system or other essential product can be a major barrier. M-KOPA was built around a pay-as-you-go approach that allows customers to make smaller payments over time. Co-founder Jesse Moore helped develop the business, which has become associated with consumer financing and connected products in African markets.

The model brings together technology, distribution and credit. Customers need a product that meets their needs, a payment schedule they can manage and clear information about the total cost. The provider, meanwhile, must assess affordability, maintain service and manage the risks of lending to customers who may have limited conventional credit histories.

Pay-as-you-go solar has been one important application of the approach. Access to reliable energy can support household activities and small businesses, although the value depends on system quality, appropriate sizing, maintenance and the customer’s ability to keep up with payments. Financing can lower the initial barrier, but it does not make a product cost-free.

The model also raises questions about responsible data use and consumer protection. Connected devices and digital payment systems can make it easier to administer instalments, but customers should understand the terms, any consequences of missed payments and how their information is used. Transparent complaints processes are essential where financing affects access to a product.

For founders, M-KOPA’s approach shows how a business can design around cash-flow constraints rather than assuming customers can pay a large amount at once. It also demonstrates that success requires more than a payment app: supply chains, after-sales support, risk management and customer education are central to the service.

The wider lesson is that inclusive business models need to balance access with sustainability. A product is valuable when it meets a real need, the financing terms are understandable and the company can maintain quality over time.

Sources: M-KOPA’s official website, https://m-kopa.com/; World Bank and Lighting Global resources on off-grid solar, https://www.worldbank.org/en/topic/energy