2014 Lender Lists:
PaydayUK vs QuickQuid: How Do the Majors Compare in 2014?
Determining the market share as it stands in 2014 is tricky due to the vast competition that they have each faced, but they are certainly still up there with Wonga who also launched in 2007, but it took a while longer for them to play catch up. What makes this rivalry so interesting is of course that each company is ran by US finance giants. PaydayUK was created locally (by MEM Consumer Finance Ltd), but they were later acquired by DFC Global Corp who also acquired Payday Express, whilst The Money Shop has been owned by them since back in 1999. Ladder Loans is also affiliated to DFC.
The QuickQuid loans operate under the subsidiary of CashEuroNetUK LLC, but the owner at the top is Cash America International Inc. Whilst DFC has three major UK brands behind them, Cash America of course owns Pounds to Pocket who have enjoyed phenomenal growth over the past few years. A later post will be following on from this soon that will discuss where else Cash America International Inc and DFC Global Corp are each operating in (internationally). Some initial checks show that each of them have been attacking Europe recently and so it will be interesting to compare just which one of them is generating the most business overseas.
Just how do these majors compare in 2014 and how well are they adapting within these competitive times? Between the two it is clear that QuickQuid have been running the most significant changes. The most interesting development was the launch of FlexCredit in 2013 that now allows applicants to select between 1 and 10 months. FlexCredit is available both on their existing website and they have also setup a separate one. Further to this, they added an optional third month to their existing product. PaydayUK have chosen to stick with their tried and tested formula, but they have added a cashback deal that returns £5 on every £100.
This cashback deal creates a possible £24.95 per £100 monthly charge (this deal has now closed). QQ charge between £20 and £29.50 monthly that is brought down to between £14 and £20.65 if you are new and use this Promo Code. With FlexCredit the charge comes out at £22.68 and this could be brought down with a promo (we are still investigating this, as the alternative code doesn’t work with it). They can boast the lowest prices and the most flexibility that are major features that We Recommend. QQ also trades 24/7, whilst PDUK close on a Sunday, although one-off payments are made at 5pm (assuming that the application isn’t flagged).
QuickQuid tend to receive bad press in the media who had a field day when they were turned down as the sponsors of Bolton Wanderers FC. In comparison, Wonga have managed to seal sponsorships with Blackpool and Newcastle (also once with Hearts). PDUK has always tended to avoid controversy over the years. I think they are a little more strict on the customer front as well and for instance only accept those who are paid monthly. As far as monthly payday loans go, these brands are still the biggest names. The industry has of course started to gravitate more towards more flexible products in recent times though (short and instalment periods).
How these majors will adapt in the years ahead remains unclear. Cash America International have been moving in the instalment direction locally that has worked incredibly well for them so far through Pounds to Pocket (and FlexCredit also looks promising in its early days). As an update, they have now launched On Stride Financial. DFC’s Ladder Loans is impressive on the flexibility and pricing stage, but with no account servicing and no weekend coverage in place, there are a few areas that could be enhanced there. Concerns have been raised surrounding future tighter regulations in payday lending, but each look to be one step ahead through their expansion into further international territories that will be investigated further here soon.