The mobile network GiffGaff has this week launched its own personal finance service that offers users loans of up to £7,500 to customers aged over 21.
It’s a strange move for a mobile network, however it could be due to the service’s future uncertainty due to the upcoming acquisition of O2, who owns Giffgaff.
The move is thanks to a new partnership with a third-party peer-to-peer lender named Ratesettler, and overs customers loans from £740 to £7,500 depending on their circumstances.
The loans are also available as either a fund for a new mobile, or for anything the user wants.
There is a small problem with this however, some customers are unhappy with the launch, with many suggesting that the company is selling its soul with the launch of these new loans.
Giffgaff chief operating officer Nigel Sudell responded with the following in a report by Marketing.
“We feel there is a market that is not being addressed by banks, and we felt there was something else we could offer.
“There is an insight around it, there is a wraparound. We are offering money-saving tips and advice from the community if people have had debt issues. We are not just throwing it out there without a different service wraparound.”
It will certainly be interesting to see how GiffGaff’s customer react to this, especially when it is so close to the acquisition of O2 by Three’s parent company, Hutchison Whampoa.