Zilch Expands D2C BNPL With Cashback Rewards in US

Buy now, pay later (BNPL) startup Zilch is expanding its direct-to-consumer (D2C) platform to the U.S. The company said it has over 150,000 people pre-registered to join its installment billing program that offers 2% instant cashback rewards, according to a press release on Tuesday (May 17).

Headquartered in London and co-founded by CEO Philip Belamant in September 2020, Zilch has over two million customers in the U.K. and adds more than 250,000 new users monthly. The startup has so far raised $400 million in debt and equity with backers like Goldman Sachs. 

Following its $110 million Series C funding round in November 2021, it was valued in excess of $2 billion. The startup achieved unicorn status in 14 months.  

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“In 2020, U.S. 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,” said Belamant. 

“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,” Belamant added. 

Zilch is partnering with Experian for reciprocal reporting of payment information to improve transparency and accuracy while also helping consumers build their credit scores. Zilch uses a cross-section of open banking technology, soft credit checks and its own proprietary behavioral data to develop a real-time view of a consumer’s financial health. 

Customers have the option of paying over six weeks, in four installments, or with one lump sum. The company’s partnership with Mastercard gives Zilch customers the ability to shop at 38.7 million retailers around the world.

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As part of the company’s expansion to the U.S., Zilch opened an office campus in Miami headed by Zilch’s U.S. CEO Albert Periu. The company anticipates that the U.S. market could hit 125 million people, and the plan is to scale accordingly and hire more than 100 employees in the U.S. before 2022 closes.