Zilch, a UK-based ad-subsidised payments network (ASPN), has launched a BNPL offering that allows customers spread payments for larger purchases over three months.
The ‘Pay over 3 months’ feature has already been made available to around 100,000 Zilch customers as part of a trial of the product. Eligible customers from Zilch’s registered users will be offered the new product from April 2024 onwards, the firm said in a statement.
Zilch operates by providing retailers instant connection with first-party data and a closed loop network of high intent customers. This includes offering personalised savings, deals and discounts codified to their habitual spend.
Under the launch, users of the Zilch app will have a choice between ‘Pay over 3 months’, the shorter-tenor ‘Pay over 6 Weeks’ or, for day-to-day purchases, Zilch’s ‘Pay Now’ debit product where they earn up to 5% cashback.
‘Pay over 3 months’ has a minimum spend threshold of £75 during beta testing. It requires users to pay 25% up-front and spread the remaining purchase price over three instalments, the same as they currently do when making interest-free credit repayments over six weeks.
Philip Belamant, CEO and co-founder of Zilch, said: “This new payment option is tailored for significant purchases or emergency moments, such as buying electronics, car tyres or home repairs like when the boiler breaks. As Zilch is FCA-regulated, customers can spend with the confidence that every payment over £100 is covered under section 75 of the Consumer Credit Act. It’s simply the best way for any adult to pay – especially in today’s economic climate.”
Will Prosser, Director of Digital Marketing and CRM, a TUI UK & IE spokesperson said, “The launch of ‘Pay over 3 months’ is fantastic news for Zilch customers and consumers everywhere, giving them the option to spread the cost of larger purchases over a longer period. It’s a great tool for supporting people in managing their finances when buying bigger-ticket items like a holiday and it’s important to us that we provide our customers with choice. Partnering with Zilch who offer zero interest or fees, is one way we’re adding value and peace of mind for our customers.”
