Zilch launches a new credit payment product

Thursday 22 February 2024 11:30 CET | News

UK-based payments technology company Zilch has launched a ‘Pay over 3 months’ product to offer more flexibility to customers.


Having undergone a trial phase accessible to approximately 100,000 Zilch customers, the new product is set to roll out to eligible users from April 2024 onwards. This addition to Zilch's suite of payment options provides customers with increased choice, enabling them to select between 'Pay over 3 months', the shorter-term 'Pay over 6 Weeks', or the reward-earning 'Pay Now' debit product for everyday transactions. 

Under the 'Pay over 3 months' scheme, customers will initially pay 25% of the purchase price upfront and spread the remaining balance over three instalments, mirroring the existing structure for interest-free credit repayments over six weeks. Importantly, this product falls under Zilch's FCA-regulated consumer credit license, ensuring adherence to industry standards and consumer protection measures. Additionally, customers will have the opportunity to improve their credit scores through Zilch's reporting agreements with leading Credit Reference Agencies. 

With a minimum spend threshold of GBP 75 during the beta phase, 'Pay over 3 months' offers consumers the ability to manage larger expenses over an extended period, thereby alleviating the immediate financial burden. Borrowing under this scheme will be subject to personalised affordability limits to safeguard users' financial well-being. 

In the company press release, officials from Zilch emphasised the product's alignment with customer needs, citing its suitability for significant purchases or unforeseen expenses. They highlighted Zilch's FCA regulation as a cornerstone of consumer confidence, particularly in terms of protection under the Consumer Credit Act.


UK-based payments technology company Zilch has launched a ‘Pay over 3 months’ product to offer more flexibility to customers.


Zilch’s partnership with UK merchants 

Drawing from positive outcomes observed during beta testing, Zilch has engaged in partnerships with various leading UK merchants to offer the 'Pay over 3 months' option, both in-store and through the app. This initiative aims to enhance accessibility and convenience for consumers seeking flexible payment solutions. 

Officials from TUI UK & IE lauded the introduction of 'Pay over 3 months' as a means of supporting customers in managing finances for larger transactions, such as holiday bookings. The collaboration with Zilch underscores a commitment to providing customers with diverse payment alternatives. 

In addition to full subsidy options from select merchants such as Lego, Nike, and Morrisons, customers can opt for 'Pay over 3 months' with a nominal upfront fee at any of the 38 million merchants worldwide accepting Mastercard.

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Keywords: product launch, fintech, instalment payments, payments
Categories: Payments & Commerce
Companies: Zilch
Countries: United Kingdom
This article is part of category

Payments & Commerce


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