Many of us have wanted to buy something for our home or gadgets that we could not afford right there and then. A broken fridge, an irreparable air conditioner in the middle of the summer, a new TV, you name it. However, a new method of payment is stoking the flames of public intrigue - buy now, pay later. 

The concept of Buy Now, Pay Later (BNPL) has increasingly become a popular financial model, allowing consumers to make purchases and defer payments into manageable instalments, often without interest.

In Cyprus, atokes.com emerges as a pioneering force in this domain, founded on the principle of making desirable products accessible without the immediate financial burden. This initiative was sparked by a simple yet relatable moment: a co-founder's wish to buy a PlayStation without having to pay its full amount upfront.

Transitioning from concept to reality, the team faced the challenge of introducing and legitimizing the BNPL model in Cyprus. Initial scepticism from consumers, who were unfamiliar with BNPL and wary of potential scams, was a significant hurdle. The journey began in earnest with the support of the Bank of Cyprus' incubator, IDEA, which provided the necessary prestige and trustworthiness to the fledgling company. 

Positive Google Reviews and word-of-mouth recommendations played a crucial role in gradually building consumer trust. A pivotal challenge was the slow adoption rate in Cyprus, a market generally resistant to new financial models. Yet, the practicality and benefits of BNPL, especially in situations requiring urgent purchases like replacing a broken fridge or air conditioner, gradually won over consumers

Atokes.com is a platform born from the vision of the team, who identified a gap in the existing credit market. Traditional credit solutions, such as credit cards, often came with insufficient terms for consumers who sought to make significant purchases without immediate financial readiness. 

The platform boasts an assortment of products from 10 distributors, including items ranging from kitchenware and air conditioners to technology and arts, with ambitions to expand its distributor and product base further. They only work with Cyprus-based distributors as the network and community of repair shops, hardware stores, and IT specialists are close-knit, ensuring that atokes.com can service the needs of customers as promptly as possible. This e-shop on their platform, however, is only one part of their bespoke technology suite.

A cornerstone of atokes.com's approach is its sophisticated technology for assessing a consumer's creditworthiness. Upon registration, the platform employs proprietary technology to connect with the consumer's bank account, with permission, to briefly access their financial data. This process, facilitated by a regulated institution, allows the company to analyze the consumer's credit score efficiently.

The platform's algorithm calculates a monthly credit limit for each user, ensuring that purchases remain within their financial capacity to prevent overextension. This responsible practice is central to atokes.com's commitment to promoting financial health among its users.

The team introduced a BNPL model that promised a straightforward and cost-effective alternative: enabling customers to purchase goods in instalments without accruing additional fees.

The essence of the platform lies in its operational simplicity and consumer-friendly approach. The platform secures products at wholesale prices through partnerships with distributors across Cyprus, then offers these products to consumers at regular market prices, allowing for instalment payments without any interest. 

Their business model is underpinned by strategic agreements with distributors, enabling them to leverage better pricing while ensuring the company's financial stability and profitability. 

Fotis Karkampoulias offers critical advice to fellow entrepreneurs and startup founders: full commitment to the venture is non-negotiable, and recognizing the limits of one's expertise is vital. Building a startup requires a dedicated team, where trust and commitment are mutual. 

For distributors looking to partner with atokes.com, the process begins with an email to [email protected]. The team assesses the potential partnership based on product fit within the platform's pricing strategy and market demand, followed by discussions on structure and marketing collaboration.

In shaping the BNPL landscape in Cyprus, this unique startup stands as a testament to the transformative power of innovative financial solutions tailored to meet consumer needs and market challenges. Through strategic partnerships, advanced technology, and a steadfast commitment to consumer benefits, they not only facilitate immediate access to goods but also champion financial literacy and responsible spending. 

As the platform continues to evolve, its journey offers valuable insights into the potential of BNPL to redefine purchasing dynamics, making it a model worth watching in the broader financial landscape.

For more details and insights into atokes.com’s journey and their next steps, watch the full episode here.