San Francisco-based LendUp will announce today that it has signed two service agreements with global money transfer and payment services company, MoneyGram, according to a LendUp release. LendUp will enable real-time offline payments for loans using MoneyGram’s ExpressPayment Service at 39,000 agent locations in the U.S.
LendUp “provides cardholders with better credit products than those offered by traditional payday lenders,” and its first product called The LendUp Latter is an “alternative to payday loans.” With the connection of its mobile platform to MoneyGram’s agent network, borrowers will have another option for loan repayment.
“Teaming up with MoneyGram is a perfect example of how we can use technology to enable convenience for our customers,” said Sasha Orloff, LendUp CEO and co-founder, in the release. “Today we are presenting new payment options exactly where many of our customers prefer to do business. Our goal is to make access to money seamless and transparent. This is another huge step in that direction.”
In the future, LendUp and MoneyGram expect to together “introduce products and services that make access to credit products through LendUp quicker and more convenient.”
This is good news for Small Dollar Credit (SDC) consumers, as a recent report by the Center for Financial Services Innovation (CSFI) indicated that rapid access to funds and store location convenience ranked among most important for product design features.
Pete Ohser, executive vice president of MoneyGram U.S. and Canada, said in the release that “LendUp’s cutting edge technology and consumer-friendly approach to transparency in lending” together with MoneyGram’s ExpressPayment Service is “a win” for both companies as well as consumers looking to better their financial status.