UK-based peer-to-peer (P2P) lender Elfin Market is preparing to launch the industry’s first physical P2P credit card, the Peer2Peer Finance News has reported.
The new card, which is termed as the ‘Elfin Card’, is set to launch later this year.
It will be linked to the Elfin Market’s existing credit facility named Elfin Purse, the report added.
Elfin Purse allows borrowers to make transactions and withdrawals up to £2,000 ($2,478) with a representative annual percentage rate (APR) of 5.8%.
Elfin Market co-founder and COO Lakshithe Wagalath said: “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.”
The Elfin Card is expected to come with the same representative APR as Elfin Purse, according to the online and print media company.
The actual rate, however, is subject to change depending on various factors including the borrower’s credit rating.
Wagalath added: “Recent innovations in the credit card market have essentially focused on making borrowers’ experience more user-friendly, but we believe it is the right time to also disrupt the pricing structure of this market and offer an affordable and fair alternative to traditional credit cards.”
