FinTech Zilch launches ‘Pay over 3 months’ BNPL product


Zilch has launched a new credit payment product, allowing its customers to spread interest-free repayments for larger purchases over three months. The new ‘Pay over 3 months’ product will provide more flexibility to customers and drive up Zilch’s wallet share.

The product is already available to around 100,000 Zilch customers in a trial. Eligible customers from over 3.6 million registered users will be offered the new product from April 2024 onwards.

The launch will provide Zilch’s customers with greater choice when paying, enabling them to choose between Pay over 3 Months, Pay over 6 Weeks or, for day-to-day purchases, the ‘Pay Now’ debit product where they earn up to 5%.

When opting to ‘Pay over 3 months’, Zilch customers will pay 25% up-front and spread the remaining purchase price over three instalments, just like they currently do when making interest-free credit repayments over six weeks. They will benefit from the same consumer safeguards given that Zilch will offer this as a regulated product under its FCA consumer credit licence.

Philip Belamant, CEO, and co-founder of Zilch said, “Today’s product launch moves Zilch closer to our end game of capturing total share of wallet. This new payment option is tailored for significant purchases or emergency moments, such as buying electronics, car tyres or home repairs like when the boiler breaks. As Zilch is FCA-regulated, customers can spend with the confidence that every payment over £100 is covered under section 75 of the Consumer Credit Act. It is simply the best way for any adult to pay – especially in today’s economic climate.”

Zilch has partnered with a diverse range of UK merchants where customers can Pay over 3 months, in-store or on the app, with no fees. Other merchants choosing to fully subsidise customers’ cost of credit through their advertising spend include Lego, Nike and Morrisons. Alternatively, customers can Pay over 3 months, for a small and clearly stated up-front fee starting as low as £2, at any of the 38 million merchants who accept Mastercard worldwide.