Zilch (company)

Zilch Technology Ltd., known as Zilch, is a direct-to-consumer ad-subsidised payments network. Headquartered in London, Zilch combines payments and advertising to offer customers flexible payment solutions for online and in-store transactions, with the vision "to eliminate the cost of consumer credit. For good".

Publicly launched in September 2020, Zilch amassed more than 3.5 million registered customers within 36 months. In October 2021, Zilch’s valuation reached $2.2 billion, making it the fastest FinTech company in Europe to achieve double unicorn status.

Since April 2020, Zilch has been regulated by the UK's Financial Conduct Authority (FCA), obtaining a consumer credit license through the Regulatory Sandbox Programme.

Zilch operates from three global locations: its headquarters in London, UK, an office in Miami, US, and a technology hub in Krakow, Poland.

History
Zilch was founded by Philip Belamant, Serge Belamant, and Sean O’Connor in 2018. In 2019, Zilch was accepted into the UK's FCA Regulatory Sandbox Programme to trial its product, launching a beta version for external customer testing in August.

After receiving a consumer credit license from the FCA in April 2020, the Zilch app was officially launched to UK consumers in September 2020.

Zilch's valuation surpassed £500 million in April 2021, followed by Series B funding of £83 million from Goldman Sachs and DMG Ventures, and a debt facility of £125 million from Goldman Sachs in July. November saw an additional £82 million from Series C funding, led by Ventura Capital and Gauss Ventures. By November 2021, Zilch boasted 1 million registered users and a $2 billion valuation, becoming the fastest FinTech company in Europe to attain double unicorn status since Series A funding.

In April 2022, Zilch partnered with credit reference agency Experian to announce plans to reciprocally report credit data for its credit transactions.

In May 2022, Zilch expanded into the US, opening an office in Miami, and appointing Albert Periu as CEO of Zilch USA, alongside a beta product rollout to over 150,000 pre-registered US customers.

In June 2022, Zilch increased its Series C funding from $50 million to $110 million and grew its customer base to 2.5 million. At the June 2022 Credit Strategy Lending Awards, Zilch won ‘Best Credit Card’.

Zilch announced it was to start reporting to leading credit reference agencies (CRAs), including Experian and TransUnion, in January 2023. The agreement enables UK adults to build their credit records using interest-free credit options instead of relying on higher-cost, revolving credit products. This agreement made Zilch the first Buy Now, Pay Later (BNPL) provider to have payment data reported to all major UK credit reference agencies and utilised in determining credit scores.

Zilch collaborated with leading UK debt charity StepChange in February 2023 to integrate StepChange Direct's service into its platform, becoming the first UK provider of BNPL to do so.

Zilch opened a new innovation and software development hub in Krakow, Poland, on June 29, 2023.

In January 2023, Zilch published a public white paper titled The Googlisation of Payments, outlining the company's pioneering method of funding payments and financial services through advertising revenue. This strategy emulates the revolutionary business models established by Google and Meta, where services are provided to the user at no cost, supported by advertising proceeds.

Zilch marked its third anniversary since the beta launch on August 31, 2023, with the London Stock Exchange Group's CEO, Julia Hoggett, inviting the company to open the stock markets for trading in celebration. Zilch took this opportunity to announce that its 3.5 million customers had spent over £1.5 billion using the “Pay Now” debit product, yielding more than £300 million in rewards and savings on interest and late fees.

In January 2024, it was reported by Sifted that Zilch had secured an investment from eBay.

In June 2024, Zilch reported that it has raised $125 million in debt financing from Deutsche Bank.

Products and Services
Ad-Subsidised Payment Network (ASPN)

Zilch’s Ad-Subsidised-Payments Network (ASPN – pronounced “aspen”) connects merchants directly with consumers, utilising first-party data to offer customised discounts and savings to consumers based on their previous spending habits. ASPN relies on Zilch virtual card transactions which generate advertising revenue that is partly distributed back to customers. This system incentivises both merchants, who gain access to an audience primed to buy, and customers, who enjoy rewards from using their Zilch card.

“Pay Now”

Zilch provides an over the top (OTT) virtual debit card payment option for its customers, who can then earn up to 5% in cashback and rewards on both online and in-store debit purchases.

“Pay Over 6 Weeks” and “Pay Over 3 Months”

Zilch customers can choose to in-app toggle to switch from “Pay Now” to “Pay Over 6 Weeks” or “Pay Over 3 Months”, allowing them to spread interest-free credit repayments over six weeks or three months. If all repayments are made on time, customers can enhance their credit profiles with major credit reference agencies.

Zilch Up

In October 2023, Zilch launched Zilch Up, a product focused on financial inclusivity, enabling customers to build their credit profiles without incurring interest. It allows users to choose flexible payment options, such as a 50% initial instalment with the remaining balance payable over six weeks. With the objective of innovating affordability and fostering financial inclusion, Zilch announced that Zilch Up had helped over 25,000 credit-invisible individuals become visible to major credit reference agencies in the UK.