Short-term loans company Wonga, based in Britain, has chosen South Africa as its first destination for international expansion.
Wonga was launched in 2007 by South African founders Errol Damelin and Jonty Hurwitz and has grown to be a market leader for providing short-term unsecured loans that can only be approved online.
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The company’s premise is to offer money to see customers through till payday and it has said loans of between R100 and R2,000 for periods up to a month will be on offer for South African customers.
Wonga operates using automated risk assessment technology on its website, showing how much would have to paid back depending on how much is loaned and for how long for. Loans for new customers are smaller and only extend to a maximum of 30 days.
The company, named after an English slang word for money, has recently launched a business arm of its UK operations.
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