Wonga takes on credit cards with e-finance loans

Wonga takes on credit cards with e-finance loans

Payday lender Wonga is to expand its business into longer-term financing for online retail purchases.

Wonga has partnered with furniture retailer Cotswold to offer consumers three-month financing deals on purchases made through the site.

The company - which has set its sights on building a diversified business model - has branded the service as PayLater, with the slightly tarnished Wonga brand appearing only in the small print.

Unlike the whopping 4,214% APR charged on Wonga's controversial 30-day deals, the PayLater APR comes it at a more modest 27.7%, putting it within the sights of bank-issued credit cards.

Cotswold is the only company to have so far signed up for PayLater, which is being launched in stealth mode ahead of a full-scale roll out early next year.

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