FinTech: UK Digital Bank Zopa Hops On To The BNPL Bandwagon

June 8, 2022 | FinTech, News
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The bank says it’s offering BNPL 2.0, a version that is regulated.

Zopa, the digital challenger bank in the UK, has entered the country’s £6 billion buy now pay later market with a differentiated product that is geared towards regulatory compliance and responsible credit. Zopa’s BNPL will ensure that customers do not get into a debt trap by first running credit checks and affordability tests. To be offered in phases, Zopa’s BNPL suite will commence with a BNPL retail finance offering for merchants and be offered via B2BC partnerships. (Retail Tech Innovation Hub)

Zopa’s BNPL product will “carefully and closely align with the Treasury’s ongoing consultation in the UK.”

In other features emphasising responsible credit availability, Zopa will:

  • Share data with credit rating agencies to give other lenders a full picture of people’s debt positions,
  • Help customers to better consolidate, structure and pay down their debt using its proprietary tools, and
  • Enable users to build their credit profiles and improve their financial positions.

Zopa will launch a consumer-facing BNPL product once regulation is in place.

Responsible lending

Tim Waterman, Chief Commercial Officer at Zopa, says: “Against a backdrop of global financial uncertainty Zopa is entering the buy now pay later space to make instant, yet responsible lending decisions with products that are sustainable and fit for purpose.”

“We are ushering in the era of BNPL 2.0, an evolution of BNPL that is regulated.”

“We combine the seamless customer journeys and best-in-class digital UX offered by traditional BNPL players alongside the ability to underwrite longer, larger loans in a way that fully meets regulatory requirements.”

Related Story: UK Households Resort To BNPL To Cover Surging Energy Bills

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