Zilch

Zilch is a UK-based BNPL provider offering a virtual payment card in partnership with Mastercard. The card allows users to pay at the merchant’s checkout and provides an option to instantly convert the transaction into an installment plan. The company was officially authorized as a consumer credit provider by the Financial Conduct Authority in 2020, following a wider probe into the regulation of BNPL providers in the UK. In January 2023, the company shared data on customers' balances and repayments with credit rating agencies, tightening its lending rules. Zilch launched its Ad-Subsidized Payments Network (ASPN) to third-party users through an API integration in June 2023. ASPN allows merchants to customize commissions and sales attributes without altering existing payment infrastructure.

Zilch’s plans allow users to pay in four phases, with 25% of the transaction value charged upfront. The remaining three installments are charged over six weeks, coming directly from the user's linked debit card. If the user misses a payment, it suspends the account but does not charge any late fees. Zilch operates a commission-based business model that charges retailers a percentage of the transaction. The company also offers select users its service at retailers that are not in its system based on payment and usage history for a fee of GBP 2 per transaction. As of June 2024, Zilch had over 4 million users and processes over 10 million in monthly payments.

In January 2022, Zilch also announced that it intends to launch its product across Europe. Zilch gained access to the US market through its acquisition of commercial lending fintech Neptune Financial Inc. (NepFin) in August 2021. With the acquisition, Zilch was expected to gain access to key licensing and regulatory capabilities. In addition, the company planned to add to its team in areas such as sales, marketing, compliance, customer service, and engineering.

In March 2024, Zilch announced plans for an IPO next year, according to CEO Philip Belamant. The company expects to be cash flow-positive and profitable monthly by its next financial year.

Key customers and partnerships

In April 2024, Zilch expanded its partnership with Amazon Web Services (AWS) to enhance its platform's AI and ML capabilities and improve its offerings. In March 2023, Zilch partnered with open banking platform Yapily, to provide improved access to 0% interest swift repayment credit.