Zilch pivots from BNPL to broader financial suite with new credit tools

Zilch has launched its most significant product expansion to date, introducing two new features designed to move the company beyond its origins as a Buy Now, Pay Later (BNPL) provider. The rollout of 'Pay Monthly' and 'Zilch Advance' marks a strategic shift toward becoming a comprehensive financial toolset for its users.

Under the new Pay Monthly feature, eligible customers can spread the cost of purchases totaling £75 or more over three, six, or 12 months. This credit option operates at a representative APR of 14.9%. Alongside this, the company introduced Zilch Advance, which utilizes AI-enabled open banking and income verification to allow eligible Extra and Plus members to access up to £100 of their earned income up to seven days before their scheduled payday.

The evolution of BNPL

Zilch, a multi-national payments network regulated by the UK's Financial Conduct Authority (FCA), is evolving its business model to drive profitability and margin expansion. While the company began as a standard BNPL service, it has increasingly integrated regulated credit products and tiered membership levels. This transition reflects a broader trend in the fintech sector where payment apps seek to increase average revenue per user by offering a wider array of financial instruments.

Market implications

This expansion signals Zilch's transition into a broader financial services ecosystem, placing it in more direct competition with traditional credit cards and personal loans. By integrating salary advance features and longer-term credit options, Zilch is positioning itself as a primary financial hub for its users. For retail partners, this shift provides deeper customer intelligence and a pipeline of high-intent shoppers who have more flexible financing options at the point of sale.

CEO Philip Belamant described the new membership tiers, Pay Monthly, and Zilch Advance as the evolution of the company's mission. According to Belamant, these tools are intended to make Zilch "the smart way to spend," where purchases are intelligently financed, optimized, and rewarded in real time.

What to watch

As Zilch scales these regulated products, the industry will be watching how the company manages credit risk associated with longer-term loans compared to its original short-term BNPL model. The success of Zilch Advance will likely depend on the adoption rates of its Extra and Plus membership tiers and the accuracy of its AI-driven income verification systems.