The deal represents the first time that a mobile network has adopted peer-to-peer lending for its members and brings together two firms which share a philosophy and structure of cutting out excessive costs – such as the rent paid for brick-and-mortar branches – that can be passed on as savings back.
Mike Fairman, CEO of giffgaff, said:
“giffgaff and RateSetter partnering on our Handset offer makes perfect sense. We both share similar ideology and believe in new and innovative ways of doing business. This deal marks a watershed in both industries, with the new generation of businesses serving the new generation of members."
Working closely with giffgaff, RateSetter have developed a bespoke credit process for people purchasing mobile phones. The process combines RateSetter’s comprehensive credit checks and processes with the telecoms industry’s best-in-class anti-fraud tools. Members going to giffgaff will now be able to purchase handsets financed by price-competitive RateSetter loans, extending the giffgaff offer to a full-blown, low-cost mobile phone package.
Rhydian Lewis – CEO of RateSetter said:
“We’re proud to be partnering with giffgaff, a company which shares our belief in reducing the cost of expensive middlemen and passing the savings that produces on to our RateSetter customers. We’ve never before offered direct loans for a single product like a mobile phone, and have spent months developing our systems to manage and mitigate risk in order to handle the increased number of borrowers expected to take out these new, smaller loans.”
