Wonga branches out into online shopping loans

Cotswold: furniture retailer introduces Wonga's PayLater service
Cotswold: furniture retailer introduces Wonga's PayLater service

Wonga has partnered with furniture retailer Cotswold to launch a new service, which does not carry the Wonga name, that allows shoppers to borrow money for one-off online purchases.

The service is called PayLater and allows the purchaser to pay off the cost of the item over 101 days, through an initial transaction fee followed by three subsequent payments. The branding of the service is similar to Wonga's, although the Wonga name is not referenced, except in the small print.

The annual percentage rate (APR) on Wonga's PayLater service is 27.7%, a significantly smaller amount than the 4,214% APR on its payday loan offering.

However, the PayLater service is across a three-month period, compared to the payday loan's maximum 30-day period.

Cotswold is the only retailer that has signed up so far in a low-key launch of the service, but a Wonga spokesman told Marketing, "We will start making more noise as we ramp up the number of partnerships."

The spokesman dismissed concerns that retailers would be put off by the brand's controversial image.

He said: "I think for a product that is as innovative as this and that provides a genuine controlled alternative to other forms of payment, there’s going to be lots of interest in the market."

Wonga is not commenting on whether the PayLater service would be offered to Newcastle fans as a way of paying for season tickets, after Wonga signed up as sponsor of the football club, which has Sports Direct owner Mike Ashley as its chairman.

The launch of the service comes as Wonga pursues a strategy of product diversification through the launch of new products, including its 'Wonga for business' service, and start-up businesses in other countries including South Africa.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug