Setting its sights on the UK’s GBP 6 billion BNPL market, Zopa brings an option for larger purchases (GBP 250 – GGP 30,000) that may take a customer months or years to save up for.

The new offering combines the technology and innovation that enables instant decisions and fast consumer journeys of a fintech, alongside the consumer protection, credit checks, and safeguards of a regulated bank.

Zopa bank will offer affordable credit by running credit checks and affordability tests for all customers and it will share data with credit rating agencies (CRAs) to give other lenders a full picture of people’s debt positions. Additionally, it will help customers to better consolidate, structure, and pay down their debt using its proprietary tools, along with enabling users to build their credit profiles and improve their financial positions.

It combines the seamless customer journeys and digital UX offered by traditional BNPL players alongside the ability to underwrite longer, larger loans in a way that fully meets regulatory requirements.

The company’s first product will offer BNPL retail finance for merchants and will be deployed through B2BC partnerships. In a second phase, once new regulation comes into place, Zopa will broaden its BNPL toolkit with a consumer offering.