Wonga launches PayPal rival - Telegraph The company is in the early stages of developing the Paylater offering and will initially work with a small number of retailers. However, the Sunday Times said the company's founder, Errol Damelin, was in discussions with some of Britain's biggest online retailers over the product. The company has been criticised for an annual percentage rate (APR) of more than 4,000pc but argues that this figure is misleading because credit is extended for a much shorter period of time. It also claims to be meeting demand for short-term loans from people shunned by high street banks. There have been reports that the London-based company is considering a US stock market flotation that could value the business at more than £1bn. Wonga saw profits treble by approving almost 2.5m short term loans in its last financial year. This generated almost £185m in revenue, giving Wonga a net income of £45.8m.