Zilch

Short description: Financial technology company

Zilch

Zilch logo

Trade name

| Zilch Technology Limited
Type| Private
Industry| FinTech
Founded| 2018; 6 years ago (2018)
Founder| Philip Belamant
Serge Belamant
Sean O’Connor
Headquarters|

London

United Kingdom

Key people

| Philip Belamant (CEO and Co-Founder), Sean O’Connor (Co-Founder), Serge Belamant (Chairman and Co-Founder)
Services| Financial Services
Revenue|  £30 million (2023)

Number of employees

|  250 (2023)
Website| www.zilch.com

Zilch Technology Ltd., known as Zilch, is a direct-to-consumer ad-subsidised payments network.[1][2] 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".[3][4][5]

Publicly launched in September 2020, Zilch amassed more than 3.5 million registered customers within 36 months.[6][7] In October 2021, Zilch’s valuation reached $2.2 billion, making it the fastest FinTech company in Europe to achieve double unicorn status.[8]

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.[9][10]

Zilch operates from three global locations: its headquarters in London, United Kingdom , an office in Miami, United States , and a technology hub in Krakow, Poland .[11][12][13][14]

## Contents

* 1 History
* 2 Products and Services
* 3 See also
* 4 References

## History

Zilch was founded by Philip Belamant, Serge Belamant, and Sean O’Connor in 2018.[15][16] 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.[17]

After receiving a consumer credit license from the FCA in April 2020, the Zilch app was officially launched to UK consumers in September 2020.[18][19]

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.[19] November saw an additional £82 million from Series C funding, led by Ventura Capital and Gauss Ventures.[20] 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.[21][22][23][24][25][26]

In April 2022, Zilch partnered with credit reference agency Experian to announce plans to reciprocally report credit data for its credit transactions.[27]

In May 2022, Zilch expanded into the United States , opening an office in Miami, and appointing Albert Periu as CEO of Zilch United States , alongside a beta product rollout to over 150,000 pre-registered United States customers.[12][11]

In June 2022, Zilch increased its Series C funding from $50 million to $110 million and grew its customer base to 2.5 million.[28][29][30] At the June 2022 Credit Strategy Lending Awards, Zilch won ‘Best Credit Card’.[31]

Zilch announced it was to start reporting to leading credit reference agencies (CRAs), including Experian and TransUnion, in January 2023.[32][33][34] The agreement enables United Kingdom adults to build their credit records using interest-free credit options instead of relying on higher-cost, revolving credit products.[35] 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.[6]

Zilch collaborated with leading United Kingdom 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.[36][35][37][38]

Zilch opened a new innovation and software development hub in Krakow, Poland , on June 29, 2023.[39][40][13]

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.[1][41]

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.[42] 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.[43][44]

In January 2024, it was reported by Sifted that Zilch had secured an investment from eBay.[45]

## 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.[46][47] ASPN relies on Zilch virtual card transactions which generate advertising revenue that is partly distributed back to customers.[48] This system incentivises both merchants, who gain access to an audience primed to buy, and customers, who enjoy rewards from using their Zilch card.[49][2]

“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.[50][51][52]

“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.[53][54][55] If all repayments are made on time, customers can enhance their credit profiles with major credit reference agencies.[56][57]

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.[58][59][60] It allows users to choose flexible payment options, such as a 50% initial instalment with the remaining balance payable over six weeks.[61][62] 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.[63]

## See also

* PayPal
* Klarna
* Afterpay
* Affirm
* American Express
* Revolut

## References

1. ↑ 1.0 1.1 "Googlisation of Payments: a $1 trillion evolution of the payments model - Zilch" (in en-US). https://www.zilch.com/news/googlisation-of-payments-a-1-trillion-evolution-of-the-payments-model/.
2. ↑ 2.0 2.1 "Zilch rolls out its Ad-Subsidised-Payments-Network" (in en). https://thepaypers.com/online-payments/zilch-rolls-out-its-ad-subsidised-payments-network--1262921.
3. ↑ "How It Works: Pay 25% Upfront, Pay the Rest Later- Zilch" (in en-GB). https://www.zilch.com/uk/how-zilch-works/.
4. ↑ Sterry, Rachel (2022-02-10). "Pay Zilch: A Virtual Card That Allows Consumers Buy Now, Pay Later And Enjoy Rewards Without Interest Payments | ABC Money" (in en-GB). https://www.abcmoney.co.uk/2022/02/pay-zilch-a-virtual-card-that-allows-consumers-buy-now-pay-later-and-enjoy-rewards-without-interest-payments/.
5. ↑ "Home - Zilch" (in en-US). https://www.zilch.com/corporate/home/.
6. ↑ 6.0 6.1 "Zilch Announces the Official Launch of Zilch up, Which Provides Access to More Affordable Credit and Is Building Stronger Financial Futures" (in en). 2023-10-12. https://www.businesswire.com/news/home/20231012901593/en/Zilch-Announces-the-Official-Launch-of-Zilch-up-Which-Provides-Access-to-More-Affordable-Credit-and-Is-Building-Stronger-Financial-Futures.
7. ↑ AltFi (2023-08-31). "Zilch hits 3.5 million users" (in en). https://www.altfi.com/article/zilch-hits-3-5-million-users.
8. ↑ AltFi (2021-11-11). "BNPL upstart Zilch becomes fastest ever unicorn with $2bn valuation" (in en). https://www.altfi.com/article/8526_bnpl-upstart-zilch-becomes-faster-ever-unicorn-with-2bn-valuation.
9. ↑ News, Business Wire (2023-10-12). "Zilch Announces the Official Launch of Zilch up, Which Provides Access to More Affordable Credit and Is Building Stronger Financial Futures" (in en-GB). https://alwaysfinance.co.uk/2023/10/12/zilch-announces-the-official-launch-of-zilch-up-which-provides-access-to-more-affordable-credit-and-is-building-stronger-financial-futures/.
10. ↑ "Issuer Services | London Stock Exchange". https://www.lsegissuerservices.com/spark/txNJ9DGegyXUkKWCn4NJtJ/london-stock-exchange-interview-innovate-finance-and-zilch.
11. ↑ 11.0 11.1 Hunt, Simon (2022-05-17). "London 'buy now, pay later' startup Zilch heads to Miami with new office" (in en). https://www.standard.co.uk/business/zilch-miami-us-credit-cards-buy-now-pay-later-philip-belamant-b1000458.html.
12. ↑ 12.0 12.1 "UK fintech double unicorn Zilch launches in the US". https://ffnews.com/newsarticle/uk-fintech-double-unicorn-zilch-launches-in-the-us/.
13. ↑ 13.0 13.1 Dojan, Sorin-Andrei (2023-06-15). "Zilch opens technology hub in Poland" (in en-US). https://www.electronicpaymentsinternational.com/news/zilch-opens-technology-hub-in-poland/.
14. ↑ "British fintech Zilch opens technology hub in Krakow" (in en). https://wbj.pl/british-fintech-zilch-opens-technology-hub-in-krakow/post/138621.
15. ↑ "From Zilch to $2bn" (in en). https://fabric-staging.economist.com/zilch-case-study/.
16. ↑ "How Philip Belamant, CEO and Co-Founder of Revolutionary Payments Venture Zilch, Has Disrupted the Fintech Space" (in en-GB). 2022-09-06. https://bmmagazine.co.uk/business/how-philip-belamant-ceo-and-co-founder-of-revolutionary-payments-venture-zilch-has-disrupted-the-fintech-space/.
17. ↑ "London Buy Now Pay Later business lands consumer lending authorisation - Zilch" (in en-US). https://www.zilch.com/news/london-buy-now-pay-later-business-lands-consumer-lending-authorisation/.
18. ↑ "Zilch Continues to Lead Responsible Lending in the Payments and BNPL Space - Zilch" (in en-US). https://www.zilch.com/news/zilch-continues-to-lead-responsible-lending-in-the-payments-and-bnpl-space/.
19. ↑ 19.0 19.1 Mehta, Zubin (2020-11-24). "BNPL fintech Zilch obtains consumer lending license from FCA" (in en-US). https://www.retailbankerinternational.com/news/zilch-secures-consumer-lending-authorisation-from-british-watchdog/.
20. ↑ Marzook, Safiya (2021). "Zilch Technology secures £82 million Series C investment led by Ventura Capital and Gauss Ventures". https://www.uktechnews.info/2021/11/10/zilch-technology-secures-82-million-series-c-investment-led-by-ventura-capital-and-gauss-ventures/.
21. ↑ Ballard, Oli (2021-11-16). "UK fintech Zilch becomes fastest European 'double unicorn' following $110m Series C funding round - Business Leader News". https://www.businessleader.co.uk/uk-fintech-zilch-becomes-fastest-european-double-unicorn-following-110m-series-c-funding-round/.
22. ↑ "Fintech double unicorn Zilch gallops past 2 million customers in record time - Zilch" (in en-US). https://www.zilch.com/news/the-london-based-unicorn-fintech-announced-today-that-it-has-expanded-its-partnership-with-mastercard-to-bring-zilchs-popular-over-the-top-buy-now-pay-later-bnpl-digital-card-offering-to-europe-a/.
23. ↑ Kleinman, Mark. "'Buy now pay later' provider Zilch strikes $100m funding deal with Goldman and Daily Mail-owner". https://news.sky.com/story/buy-now-pay-later-provider-zilch-strikes-110m-funding-deal-with-goldman-and-daily-mail-owner-12361365.
24. ↑ Lucas, Peter. "The United Kingdom's Zilch Becomes the Latest Entrant in the Hotly Contested U.S. BNPL Market". https://www.digitaltransactions.net/the-united-kingdoms-zilch-becomes-the-latest-entrant-in-the-hotly-contested-u-s-bnpl-market/.
25. ↑ Browne, Ryan. "UK buy now, pay later start-up quadruples valuation to $2 billion, plans U.S. expansion". https://www.cnbc.com/2021/11/10/uk-buy-now-pay-later-start-up-zilch-raises-funds-for-us-expansion.html.
26. ↑ England, Joanna. "Zilch CEO Philip Belamant on Startup to Double-Unicorn Story". https://fintechmagazine.com/digital-payments/zilch-ceo-philip-belamant-on-startup-to-double-unicorn-story.
27. ↑ Kenyon, Tilly. "Zilch partners with Experian for responsible BNPL criteria". https://fintechmagazine.com/financial-services-finserv/zilch-partners-with-experian-for-responsible-bnpl-criteria.
28. ↑ Symcox, Jonathan (2022-06-30). "Hypergrowth Zilch extends Series C to £130m+" (in en). https://businesscloud.co.uk/news/hypergrowth-zilch-extends-series-c-to-130m/.
29. ↑ Allen, Patricia (2022-06-30). "UK fintech unicorn Zilch secures an additional €47.9 million for its BNPL platform" (in en-US). https://www.eu-startups.com/2022/06/uk-fintech-unicorn-zilch-secures-an-additional-e47-9-million-for-its-bnpl-platform/.
30. ↑ Woffenden, Claire (2022-10-20). "Behind the Idea: Zilch" (in en-GB). https://thefintechtimes.com/behind-the-idea-zilch/.
31. ↑ "Lending Awards Winners 2022 revealed" (in En). https://www.creditstrategy.co.uk/latest-news/latest-news/lending-awards-winners-2022-revealed.
32. ↑ "Buy now pay later to impact credit scores" (in en). 2023-01-25. https://www.themoneyedit.com/banking/buy-now-pay-later-changes-credit-score.
33. ↑ Downes, Hannah (2022-02-09). "TransUnion to include 'buy now, pay later' borrowing on credit reports - Which? News" (in en). https://www.which.co.uk/news/article/transunion-to-include-buy-now-pay-later-borrowing-on-credit-reports-aojS38F4ieoB.
34. ↑ AltFi (2022-04-07). "Zilch joins forces with Experian to inform BNPL lending" (in en). https://www.altfi.com/article/9073_zilch-joins-forces-with-experian-to-inform-bnpl-lending.
35. ↑ 35.0 35.1 "Zilch signs pioneering partnership to work with leading UK debt charity StepChange in face of the cost-of-living crisis - Zilch" (in en-US). https://www.zilch.com/news/zilch-signs-pioneering-partnership-to-work-with-leading-uk-debt-charity-stepchange-in-face-of-the-cost-of-living-crisis/.
36. ↑ "Zilch and StepChange agree customer support partnership" (in en-GB). 2023-02-07. https://www.credit-connect.co.uk/news/zilch-and-stepchange-agree-customer-support-partnership/.
37. ↑ O'Boyle, Daniel (2023-02-07). "Zilch partners with debt charity StepChange" (in en). https://www.standard.co.uk/business/zilch-partners-with-debt-charity-stepchange-b1058397.html.
38. ↑ "BNPL firm Zilch forms partnership with debt advice charity StepChange" (in en). 2023-02-07. https://www.finextra.com/newsarticle/41744/bnpl-firm-zilch-forms-partnership-with-debt-advice-charity-stepchange.
39. ↑ "Zilch opens a new technology hub in Krakow, Poland – Do IT in Poland" (in en-US). https://doitinpoland.com/zilch-opens-a-new-technology-hub-in-krakow-poland/.
40. ↑ "Zilch Expands Technological Innovation Efforts with European Centre for Excellence in Krakow - Zilch" (in en-US). https://www.zilch.com/news/zilch-expands-technological-innovation-efforts-with-european-centre-for-excellence-in-krakow/.
41. ↑ AltFi (2023-06-27). "The 'Googlisation of Payments': an interview with Zilch CEO Philip Belamant" (in en). https://www.altfi.com/article/the-googlisation-of-payments-an-interview-with-zilch-ceo-philip-belamant.
42. ↑ Law, Ross Henry (2023-01-09). "Zilch celebrates 'third birthday milestone' with London Stock Exchange opening" (in en). https://www.fstech.co.uk/fst/Zilch_celebrates_third_birthday_milestone_with_London_Stock_Exchange_opening.php.
43. ↑ "Zilch To Celebrate Third Birthday by Opening Markets at the London Stock Exchange as Customers Top 3.5m - Zilch" (in en-US). https://www.zilch.com/news/zilch-to-celebrate-third-birthday-by-opening-markets-at-the-london-stock-exchange-as-customers-top-3-5m/.
44. ↑ "Zilch Celebrate Third Birthday by Opening Markets at the London Stock Exchange as Customers Top 3.5m" (in en). 2023-08-31. https://www.businesswire.com/news/home/20230831851503/en/Zilch-Celebrate-Third-Birthday-by-Opening-Markets-at-the-London-Stock-Exchange-as-Customers-Top-3.5m.
45. ↑ "Europe’s next IPO candidates" (in en). 2024-01-16. https://sifted.eu/articles/europes-next-ipo-candidates/.
46. ↑ "Zilch opens its revolutionary ASPN to third parties across the globe - advancing a multi-trillion-dollar payments and advertising marketplace - Zilch" (in en-US). https://www.zilch.com/news/zilch-opens-its-revolutionary-aspn-to-third-parties-across-the-globe-advancing-a-multi-trillion-dollar-payments-and-advertising-marketplace/.
47. ↑ "Zilch opens Ad-Subsidised-Payments-Network to third parties" (in en-GB). 2023-06-08. https://www.openbankingexpo.com/news/zilch-opens-ad-subsidised-payments-network-to-third-parties/.
48. ↑ "British fintech double unicorn Zilch turns 3, opens markets at London Stock Exchange — TFN" (in en). 2023-08-31. https://techfundingnews.com/british-fintech-double-unicorn-zilch-turns-3-opens-markets-at-london-stock-exchange/.
49. ↑ "Zilch rolls out ASPN to third parties" (in en-GB). 2023-06-08. https://www.credit-connect.co.uk/news/zilch-rolls-out-aspn-to-third-parties/.
50. ↑ "Zilch and Mastercard announce an expanded partnership to launch Zilch BNPL card across Europe" (in en). https://www.mastercard.com/news/europe/en/newsroom/press-releases/en/2022/january/zilch-and-mastercard-announce-an-expanded-partnership-to-launch-zilch-bnpl-card-across-europe/.
51. ↑ Laurenson, Erin (2022-01-13). "Zilch And Mastercard Announce Expanded Partnership To Launch Zilch BNPL Card Across Europe | Tbtech" (in en-GB). https://tbtech.co/fintech-2/zilch-extends-partnership-with-mastercard/.
52. ↑ "Zilch | Join over three million customers" (in en-GB). https://www.zilch.com/uk/.
53. ↑ "What is Pay over 6 weeks? | Zilch Help Center" (in en). https://help.payzilch.com/en/articles/66051-what-is-pay-over-6-weeks.
54. ↑ "How Does Zilch Work?" (in en-GB). https://www.creditspring.co.uk/blog/how-does-zilch-work.
55. ↑ "Terms of use - Zilch" (in en-GB). https://www.zilch.com/uk/terms-of-use/.
56. ↑ "How does Zilch affect my credit score? | Zilch Help Center" (in en). https://help.payzilch.com/en/articles/22784-how-does-zilch-affect-my-credit-score.
57. ↑ AltFi (2023-01-17). "Zilch could now impact your credit score, as lending data is shared with bureaus" (in en). https://www.altfi.com/article/10296_zilch-joins-klarna-in-reporting-lending-data-to-credit-bureaus.
58. ↑ "Zilch announces the official launch of Zilch Up, which provides access to more affordable credit and is building stronger financial futures - Zilch" (in en-US). https://www.zilch.com/news/zilch-announces-the-official-launch-of-zilch-up-which-provides-access-to-more-affordable-credit-and-is-building-stronger-financial-futures/.
59. ↑ "Zilch Up launches to empower credit invisible customers in the UK" (in en-US). https://ibsintelligence.com/ibsi-news/zilch-up-launches-to-help-credit-invisible-customers-in-the-uk/.
60. ↑ Prendergast, Robert (2023-10-12). "Zilch Up launches in the UK" (in en-US). https://www.retailbankerinternational.com/news/zilch-up-launches-in-the-uk/.
61. ↑ "Zilch Up launches" (in en). 2023-10-13. https://fintech-alliance.com/news-insights/article/zilch-up-launches.
62. ↑ "UK-based fintech company launches Zilch Up to bolster financial inclusivity | Silicon Canals" (in en-US). 2023-10-12. https://siliconcanals.com/news/startups/fintech/zilch-launches-zilch-up/.
63. ↑ "Zilch Up launches to empower credit invisible customers in the UK" (in en-US). https://ibsintelligence.com/ibsi-news/zilch-up-launches-to-help-credit-invisible-customers-in-the-uk/.

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