UK-based Zilch, a BNPL provider, has launched "Pay over 3 months," a regulated credit payment product allowing customers to spread interest-free repayments over three months.

The "Pay over 3 months" credit product offers users flexible repayment options on bigger-ticket purchases of GBP 75 and above and is regulated under Zilch's FCA consumer credit license. It will also allow users to build their credit scores each month through Zilch’s reporting agreements with the UK’s leading Credit Reference Agencies.

The product is currently accessible to 100,000 trial users and will be available to eligible users out of its 3.6 million registered users from April 2024 across the UK.

Analyst QuickTake: Today’s regulated credit product launch comes less than a year after Zilch launched its Ad-Subsidized Payments Network (ASPN) to allow third-party applications or card issuers that intend to participate with the network of 38 million merchants worldwide to access product commissions and other revenue streams, in addition to interchange fees.