FinTech: UK Payments And BNPL Platform Zilch Launches In The US
Zilch already had over 150,000 US customers pre-registered.
Zilch set a solid growth trajectory in the UK, amassing over two million customers within 18 months of launch in the UK, and winning a valuation of over $2 billion in a Series C funding round that raised $400 million in debt and equity from investors including Goldman Sachs (NYSE: GS). Zilch has now entered the US, and is partnering with Experian, the credit reporting agency. (BusinessWire)
Zilch targeting credit cards
“In 2020, US consumers paid $120 billion in fees and late charges to credit cards, which we believe is unacceptable and fundamentally misaligned with the interests of consumers,” stated Philip Belamant, CEO & Co-Founder of Zilch, in a statement. “They are being set up to fail and 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.”
Zilch found from a survey that US consumers now had higher expectations from their typical BNPL provider. This new version of BNPL, which BNPL has dubbed BNPL 2.0, removes fees, late charges and the lack of acceptance anywhere; it also provides consumers with cash back.
Zilch’s BNPL 2.0 business model works directly with consumers and features no fees or late charges along with 2% instant cashback rewards.
Customers can pay over six weeks, in four installments, or in one lump sum. Also, customers who pay in full benefit from deals and cash back, thus availaing the freedom and perks of credit cards, without any of the cost.
Regarding ‘acceptance anywhere,’ Zilch can be used with 38.7 million retailers globally through its partnership with Mastercard (NYSE: MA)
US headquarters: Miami
Zilch US will be led by US CEO Albert Periu.
Headquartered in Miami, the US unit is looking to hire over 100 employees in the US within the next year.
Related Story: UK Households Resort To BNPL To Cover Surging Energy Bills
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