Wonga takes on credit cards with e-finance loans
17 December 2012 | 7369 views | 0
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.