23 February 2018
Visit www.avoka.com

Wonga turns iPhone into 'virtual cash machine'

20 January 2010  |  11455 views  |  1 iphone apps on screen

London-based online credit start-up Wonga has launched a mobile app that offers instant short-term loans over the iPhone to approved applicants.

The company says the new app will turn the touch-screen device into a "virtual cash machine" for urgent or unexpected expenses.

First-time customers can download the app for free and must fill in a four-page application form on their mobile before being considered for a loan.

Users can apply for credit up to a maximum of £1000, with funds transferred to the successful applicant's bank account within 15 minutes.

Errol Damelin, Wonga founder and CEO, says: "Our vision has always been to provide UK consumers with a fast, convenient and short-term way to solve immediate cash flow problems. While automating the lending process in a responsible way was a big challenge, our technology now enables us to develop a range of products which do just that."

The company has courted controversy over its repayment terms, which are calculated at a massive APR of 2698%.

Wonga has sought to deflect criticism by pointing out that the facility is intended solely as a short-term cash advance up to a maximum of 31 days, with interest charged at one per cent a day.

The company's Web service was given its full market launch in July 2008 and it claims to have already processed nearly three-quarters of a million applications using a real-time risk and decisioning platform.

Damelin continues: "We have made this app available as a free download from the Apple Store and, although it's just as easy and quick to use as our existing Web service, our unique technology will ensure we continue to make responsible lending decisions."

The reassurances have not entirely satisfied consumer groups. Joanna Elson, from the Money Advice Trust, says: "We would urge the regulatory authorities to look carefully at the detail of this product, because we have concerns as to whether a person can be comprehensively assessed for credit using this service."

Comments: (1)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune | 21 January, 2010, 08:56

Services like Wonga - and the eBay-owned BillMeLater - testify to the availability and successful adoption of realtime credit decisioning applications. Of course, it's a another matter whether one should seek instant gratification on a matter like taking a loan that can prove to be as costly as Wonga's.  

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Twitter founder Dorsey working on iPhone credit card reader

Twitter founder Dorsey working on iPhone credit card reader

19 October 2009  |  16329 views  |  6 comments
Starbucks serves up caffeine on the iPhone

Starbucks serves up caffeine on the iPhone

24 September 2009  |  11477 views  |  0 comments
MoBank launches

MoBank launches

06 July 2009  |  13037 views  |  1 comments
Online lender Wonga.com secures $22m financing round

Online lender Wonga.com secures $22m financing round

08 June 2009  |  6432 views  |  0 comments
iPhone apps turn handsets into credit card terminals

iPhone apps turn handsets into credit card terminals

28 January 2009  |  21967 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsvisit www.nextgenbanking.co.ukVisit http://info.nice.com

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
10925 views comments | 14 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10065 views 3 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
7849 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
7545 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
7296 views comments | 10 tweets | 14 linkedin

Featured job

Six-Figure-Base, Double OTE, Benefits Package
London, UK

Find your next job