Pay-As-You-Go refers to a business model that allows users to pay for their product visa embedded consumer financing. A Paygo company will typically offer a solar product (predominantly solar home systems and multi-light pico devices) for which a customer makes a down payment, followed by regular payments for a term ranging from six months to eight years. Payments are usually made via mobile money, though there are alternative methods that include scratch cards, mobile airtime and cash.

Not all startup are so lucky to get the investment, even though some of them are so familiar with the last-mile distribution.

The shortage of capital is becoming the main obstacle to the development of the Paygo industry.

As is known to all, to run a Paygo business, sustainable capital and risk apetite is the essential things, sustainable capital means business grow, risk apetite means the ability to accept the possiblity of high default rate or decrease the default rate caused by various factors, there is always a balance point between the fast development and risk control. If we take a deep view, the capital required to run a paygo business is beyond the financial ability of most startup, which lead to the investor's involvement, but not all startup are so lucky to get the investment, even though some of them are so familiar with the last-mile distribution.

How to attract more capital to the Paygo industry?

In our opinion, the Paygo business model can be divided into 2 catagory, conentrated business model and distributed business model, or we can call it centralized business model and decentralized business model. It's obviously that the Paygo industry is now dominated by the concentrated business model, which received almost all investment, and the majority of those investment went to few leading players, the big players in the big market is always preferred by the capital market, but for small market, there are seldom players, which usually has extremely high percentage of population without access to the grid, it's obviously that shortage of capital is becoming the main obstacle to the development of the Paygo industry.

The status of concentrated Pay-As-You-Go business model

Concentrated Pay-As-You-Go business model refers to the big PAYG operators in charge of financing all client in a concentrated way, which has a high threshold and sustainable capital for companies or individuals want to run the PAYG business, it has existed for years, but there are still huge number of people without access to the electricity, and many country still without any Pay-As-You-Go operation, there are several reasons behind this:

1. Limited Capital is available for PAYG industry, capital is fundamental for PAYG business to solve the problem of affordability.
2. High Risk for PAYG business when growing bigger and bigger, high default rate and aftersales cost further decrease the margin of the business.
3. Low Mobile Money Penetration Rate makes the PAYG business hard to be scalable and result in higher costs on token generation and distribution.
4. Last-Mile Distribution is hard and high cost when the unelectrified household is living in a remote village and sparse.
5. Limited PAYG Product Solution is available to the potential PAYG operators, which makes PAYG can only suitable for a nitch market.
6. Low-Quality Non-PAYG Product Competition with a far lower price makes PAYG Products less attractive to the unelectrified household.

What is distributed Pay-As-You-Go business model?

The community level PAYG operation means acquaintance society, the solar boss are familiar with their client, thus decreasing the risk of credit assessment for target end-users compared with the country level PAYG operation.

Distributed Pay-As-You-Go business model refers to numerous PAYG operators with limited capital, they buy the PAYG products from the importer and run PAYG business at the community level.

Compared with the concentrated pay-as-you-go business model, distributed pay-as-you-go business model can fully utilize the public capital and lower the threshold to run a pay-as-you-go business.

Micergy Solar Boss Pay-As-You-Go Solar Home System

Micergy Solar Boss can create millions of Solar Enterpreneurers at community level, the simple technology allows them to run a Paygo business even with a small money.

With years of experiences in design and manufacturing pay-as-you-go solar home system, we tried to solve this problem from the product level and innovatively put forward the concept of 'Solar Boss',

Micergy Solar Boss is a distributed pay-as-you-go solar home system designed with the concept of ‘Everyone could be a solar boss’, it doesn’t rely on any extra resources like mobile money, telecom, computer or mobile phone, the solar home system itself is all required to run a pay-as-you-go business.

Each Micergy Solar Boss comes with a specific IC card to control the system,the IC card allows you to activate the device and set the number of credit days in a flexible way.

Features of Micergy Solar Boss including:

* IC Card Pay-As-You-Go Technology | Everyone Could Be A Solar Boss
* 5W Hi-Fi Speaker | Enjoy Immersive Sound Performance
* Multiple Way of Playing Audio | Bluetooth, FM Radio, U-Disk, Aux-IN
* 1 x Solar Input | Charge by Solar When Solar Available
* 4 x 12V DC Output | Power DC Lamp, DC Fan, DC LED TV
* 4 x USB Output | Charge Your Phone and 5V Electronics
* 1 x LED Torch | 1W Super Bright LED Light

About Micergy

Micergy started lithium battery manufacturing in 2009 and provides custom lithium battery products for different sectors, including energy storage batteries, lighting electric vehicle batteries, and custom batteries for golf carts, Marine, RV, and Forklifts. Besides, not limiting ourselves to the R&D of BMS to protect the battery and lengthen the lifespan, relying on the competitiveness of the battery, Micergy further embraces the IoT technology and developed comprehensive 'Energy + IoT' solutions for various sectors to solve the affordability problem of product with a high upfront cost.