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giffgaff account for half of RateSetter's loans
RateSetter, one of the leading peer-to-peer providers within the UK (and abroad) have stated that their loans arranged through giffgaff have grown significantly and now represent half the loans arranged through the platform. This commercial arrangement has been in place since November 2013 and is driving significant growth in RateSetter.
Here is the full statement from RateSetter:
The first ever commercial partnership between a P2P platform and a mobile operator has driven a dramatic increase in the number of people taking out P2P loans in the UK. The number of giffgaff loans doubled month-on-month in April as the money handled by RateSetter smashed through the £200m mark.
The successful relationship is rooted in a number of shared values. Both companies are disrupting the market to ensure a better deal for consumers. RateSetter is democratising the savings and loans market by cutting out the banks, whilst giffgaff – with its strong focus on community – is cutting out costly long-term contracts and providing flexibility to their members.
This phenomenal growth through the white label partnership has been a major boost for RateSetter, helping it to match a record number of loans during April and ensuring that the platform is leading the charge in P2P. In March, it was announced that the company was the largest P2P lender in the UK by the amount of new loans originated.
Rhydian Lewis, CEO and Founder of RateSetter, said: “Our ground-breaking partnership with giffgaff shows the potential within the P2P sector to power a whole range of consumer services, starting with mobile phones, without the high fees and rates of a high street bank. This is a fantastic example of the boom in the ‘sharing economy’.
“The driving ethos behind launching RateSetter was our belief that there must be an alternative to financing loans that offers customers a better deal. Through this exciting collaboration, we are moving beyond the direct provision of loans to borrowers and emulating the freedom our values bring across multiple sectors. The future of consumer finance is bright – and it is powered by P2P.”
A spokesperson from giffgaff, said: “This initiative has been revolutionary for our member base. We are now able to offer mobile handsets through our website, based on the easy provision of cost-effective loans provided by other members of the public.
“This is a really exciting development for giffgaff and one that we have worked on closely with our members to bring about. Together with RateSetter we are disrupting the market, offering mobile phones without costly long-term contracts and thus meeting the needs of today’s consumers.”
RateSetter first launched its partnership with giffgaff in November 2013 as a response to the growing consumer demand for alternative methods of financing everyday items. Based on joint credit and fraud management technology, the move has enabled giffgaff to offer handsets to customers without an immediate upfront payment.
The partnership answers significant demand from consumers who want access to the latest mobile technology without the burden of a 24-month contract. By helping giffgaff to make these needs a reality, RateSetter is allowing consumers to take advantage of the best value tariffs without the trade-off that big mobile networks demand. This echoes their work in the finance arena, where they offer an alternative option for savers, allowing them to bypass the banks to benefit from higher savings by offering loans directly to other members of the public.