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New P2P lending credit card aims to shake up the industry

The credit card is thought to be the first of its kind in the peer-to-peer lending industry.

men sitting in chairs

Lakshithe Wagalath (right)/Elfin Market

London-based peer-to-peer lending platform Elfin Market is set to launch what’s thought to be the first physical credit card in the P2P market.

The card will be linked to the fintech’s existing product, the Elfin Purse, and will let customers make transactions and withdrawals on the go.

Founded in August 2016 by Lakshithe Wagalath and Mansour Bouaziz who have combined industry experience and technical know-how, Elfin Market connects borrowers to lenders without expensive intermediaries.

Lakshithe Wagalath, co-founder and chief operating officer of Elfin Market, told Peer2Peer Finance News: “The Elfin Card will enable borrowers to make payments directly from their Elfin Purse and make their experience just as user-friendly as with a regular credit card, but much cheaper.”

“To the best of our knowledge, it will actually be the first payment card released by a P2P lending platform in the UK,” he added.

The card comes with a representative APR of 5.8 per cent, although the actual rate will depend on a customer's credit rating.

Mike Carter, head of platform lending at 36H Group, the peer-to-peer branch of Innovate Finance, told AltFi: “P2P lenders have made strong inroads into the unsecured personal loan market over the past 10 years, and several Fintech players already provide payment cards for consumers.”

“The credit card market is an extension to this, combining credit underwriting skills and Fintech user experience with P2P funding, to deliver an innovative and competitive product in a market dominated by large players,” he added.

Back in February 2020, Elfin Market announced it had reached its £400,000 crowdfunding target in just over 24 hours and went into overfunding as a result.

Elfin Market gained FCA authorisation last year and opened to borrowers in September 2019 and lenders in November of the same year.

UPDATE 02-06-2020 – Article amended to note that Lakshithe Wagalath spoke to Peer2Peer Finance News about the project.

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