When you think of short term finance and payday loans UK, chances are the very first brand that comes to your mind is Wonga. In a market saturated with short-term lenders, UK payday lender Wonga has convincingly climbed to the top of the list, despite ever-changing regulation in a controversial and evolving industry.
Today, the brand eclipses its competition, with many of its 400 not surviving in 2016 as new price caps on loan and repayment fees came into effect. Wonga, however, evolved and survived, remaining a recognizable household name in the UK. The brand is so big in fact that it sponsored Newcastle’s stadium, St. James Park.
With British rule taken over, the lender quickly expanded overseas, starting its journey by venturing into Canada, South Africa and Poland, before buying and assimilating a number of lenders. short-term foreigners as part of its global growth.
Today we’re going to trace Wonga’s growth overseas and find out what the future holds for one of Britain’s last internationally successful brands …
Spread Wonga’s Wings
Wonga’s overseas expansion began in early 2012, when the payday lender spread its wings to locate in South Africa, the birthplace of Wonga entrepreneur and founder Errol Damelin. Seeing significant success barely a year and a half after opening its doors in Africa’s largest economy, the lender also opened subsidiaries in Canada and Poland in the same year. Today, the brand is well established in all three countries, with the opening of a third Polish office in Warsaw in April 2016.
Assimilate the competition
But starting from scratch has not been the approach of choice in other new locations. Subsequent international expansions have often relied on the acquisition of other financial services companies in each new country. To throw Wonga Spain, the lender bought the Spanish credit agency Credito Pocket in 2013, then bought the German “pay later” payment company BillPay (with two million users to its credit) and a stake in the Indian company Nahar Credits Private in October of the same year.
Change the game
Wonga’s purchase of BillPay not only gave the lender access to the two million payment service customers in Germany, Austria and Switzerland, it also opened up a new area of business for the loan expert. on salary. Allowing users to ‘pay later’ for online purchases (often in installments), this related but distinctly different loan model is part of a change of direction for Wonga which has already made substantial changes to its business in Canada. United Kingdom in accordance with changing regulations.
So what’s next for Wonga? With a new direction attested by a recent 30 minute movie who has explored the lives of its clients, and a new vote of confidence from the FCA, the lender appears to be striving to improve the quality of its offering – a move many hope to see both at home and abroad .