"Buy Now, Pay Later" Loans Launched by Wonga, Says Loans Broker PayDayAdvances.net by PR.com

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An alternative to paying by credit card has been launched by payday loan lender Wonga, says loans company PayDayAdvances.net.

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									"Buy Now, Pay Later" Loans Launched by Wonga, Says Loans Broker
PayDayAdvances.net

An alternative to paying by credit card has been launched by payday loan lender Wonga, says loans
company PayDayAdvances.net.

Manchester, United Kingdom, April 19, 2013 --(PR.com)-- The new PayLater service allows customers
to pay for goods with a short term loan for up to 3 months with a one-off fee. Wonga hopes that the
service will prove a credible alternative to paying for goods by credit card. So far, the service has only
been launched through the online furniture retailer The Cotswold Company for goods between £100 -
£1000, but if the pilot is successful it could be rolled out to many other retailers.

PayLater allows shoppers to spread the cost of the goods over three months for a single one-off upfront
fee of 7% of the purchase price of the goods. If an order is cancelled within the statutory 14 days, the
shopper receives a full refund of the fee, or a part refund if the cancellation is after 14 days.

In a statement Wonga said: “[The] PayLater service is another example of the power of technology and
data when applied to finance. [PayLater] is a credible and innovative alternative to credit cards enabling
people to spread the cost of online shopping but in a short-term and controlled way.”

At only 27.7% APR, PayLater loans are offered at a much lower APR than the normal payday loans from
Wonga, as well as provides a simpler, transparent way of paying for goods that bridges the gap between
instant cash debit card payments and credit cards.

A spokeswoman for Cotswold said: "After trialing several finance options in the past we have decided to
trial PayLater. Their service is totally transparent, and totally optional. As it's a three-month finance
option it is a cost effective alternative to using a credit card, which is especially useful at this time of year.
Customer uptake so far has been slow, however the trial is still in its infancy. We have a fantastic
relationship with our customers, so intend to listen to their feedback over the next few months and decide
whether they find this option useful."

However, not everyone is convinced the PayLater service offers value for money. Andrew Hagger of
Moneycomms.co.uk said: “If you were to pay for £100 worth of goods on a credit card with a typical
APR of 18% and pay off £33.33 a month over three months, you'd end up paying about £3 in interest.
This makes Wonga's PayLater service more than twice as expensive. However, it might appeal to some
people who like the simplicity and transparency of it."

It is not clear how payments would be taken, but is likely that it is by continuous payment authority
which would allow Wonga to take a series of payments from a debit or credit card without seeking
permission first.

A spokesperson for quick payday loans company, PayDayAdvances.net said: “The PayLater service is a
natural extension further into the loans market for Wonga and a good idea that the customers of The

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Cotswold Company will find very useful. It's quick, easy, transparent to use and relatively cheap
compared to bank loans and overdrafts.”




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Contact Information:
PayDayAdvances.net
David Baddeley
0800 043 2027
Contact via Email
www.PayDayAdvances.net


Online Version of Press Release:
You can read the online version of this press release at: http://www.pr.com/press-release/467617


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