UK money management app Pariti has formed a referral partnership with P2P financing outfit Zopa to help users swap out their credit card debt for a consolidation loan.
The Pariti app connects to a user’s existing bank accounts, analyses their spending history, and helps them set a target for improvement.
The startup, which claims 70,000 users, says the agreement with Zopa is the first of a number of bundled relationships aimed at creating a ‘marketplace bank’ for millennial consumers.
The Zopa integration enables Pariti users to discover if they could be paying less for their debt without affecting their credit score, and to apply directly for a consolidation loan through the Pariti app.
“UK consumers are getting ripped off by credit card companies”, Pariti founder Matt Ford comments. “Introductory offers, confusing fees, and unsuitable products have meant that people are paying far too much to borrow, and are getting stuck in high-cost debt. The product integration with Zopa allows us to proactively help reduce their cost of borrowing and pay off debt faster.”
Pariti is using Zopa’s recently-released loan application service API to draw down rates from the peer-to-peer funder.
Zopa’s CEO, Jaidev Janardana, says: “The API is already being used in online retail, and the implementation of our Pariti partnership marks its first use in a fully integrated, in-app application process.
“Our own research shows that many consumers could save money by swapping out expensive credit card debt for a lower-priced Zopa loan, and by working with Pariti we are able to offer this service to even more consumers.”