Zilch's BNPL solution reaches US customers

Zilch has set its sights on a potential market of 125 million users over the long term. The company seeks to differentiate itself from rivals such as Klarna by offering cashback, which can be used to discount larger purchases through a partnership with Mastercard. It doesn’t strike deals directly with merchants. Its core BNPL product, therefore, is accepted everywhere Mastercard can be used.

The company has raised USD 400 million in debt and equity from Goldman Sachs and others, giving it a valuation of over USD 2 billion at its last Series C funding round. Founded in July 2018, Zilch’s US landing comes after growing to over two million customers in the 18 months since it launched in the UK where it is still adding over 250,000 new users per month in the country, as per the press release. 

Zilch’s officials explained that in 2020, US consumers paid USD 12 billion in fees and late charges to credit cards, which they believe is unacceptable and fundamentally misaligned with the interests of consumers. They need more flexibility, especially during a cost of living crisis and a time of surging inflation, to pay for goods and services how and when they want, with a system that avoids late payments and unnecessary, onerous fees.