20 August 2017
visit www.avoka.com

Wonga turns iPhone into 'virtual cash machine'

20 January 2010  |  11289 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  |  14671 views  |  6 comments
Starbucks serves up caffeine on the iPhone

Starbucks serves up caffeine on the iPhone

24 September 2009  |  11275 views  |  0 comments
MoBank launches

MoBank launches

06 July 2009  |  12875 views  |  1 comments
Online lender Wonga.com secures $22m financing round

Online lender Wonga.com secures $22m financing round

08 June 2009  |  6306 views  |  0 comments
iPhone apps turn handsets into credit card terminals

iPhone apps turn handsets into credit card terminals

28 January 2009  |  19238 views  |  1 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.dorsum.eudownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
9216 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7930 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
7402 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
6761 views 0 | 1 tweets | 1 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6534 views 1 | 5 tweets | 3 linkedin

Featured job

Find your next job