Zilch Technology

Founded in 2018 with a small team and a big vision, Zilch Technology offers a mobile app paired with an online payment option. Specifically, this option allows users to make purchases with zero interest. For example, it works for shopping.

The founders aimed to create a payment method that works for everyone. Consequently, they kept the customer at the center of everything.

Philip Belamant and Sean O’Connor started the company in 2018. Since then, it has grown into one of Europe’s fastest-growing companies, achieving unicorn status in record time. In addition, the Financial Times recognized Zilch as the runner-up in the Banking and Payment category of the Tech Champions 2022. Furthermore, the company achieved a turnover growth of 1,396% between 2021 and 2022.

How it works

The platform links to customers’ bank accounts, giving them flexibility in paying over time. Customers who pay in full earn rewards. Moreover, the Zilch App offers exclusive deals and higher rewards.

After approval in the app, customers receive a virtual payment card with a personalized credit balance. They can choose to pay in installments, such as the “pay in four” option. In this plan, customers pay the first 25% immediately. Then, the app splits the remaining cost into three equal payments every two weeks. Alternatively, users can pay in full with the virtual card and earn 2% cashback. This option is called “pay in one.”

Users can link debit or credit cards to their accounts. Retailers that accept Mastercard—including more than 35 million merchants worldwide—also accept the virtual Zilch card. Customers using debit cards can earn up to 5% back on purchases. Meanwhile, credit card users can pay over time with zero interest through the app. They only pay a small credit card fee, which is part of the Mastercard network.

Zilch benefits

Customers build rewards easily by using the platform and repaying on time. As a result, this can also improve their credit score. Paying immediately benefits both users and the company.

The app keeps users informed with updates on upcoming repayments and a clear record of purchase history. In addition, security remains a priority. Zilch holds SOC2 certification and protects accounts with enhanced ID verification, multi-factor authentication, and data encryption.

Costs

Opening an account is free of charge. Applying for a personalized virtual Mastercard costs nothing. The company does not charge interest on transactions with the virtual card. Additionally, it imposes no monthly or annual fees.

Conditions vary by country. In the US, no fees apply for “pay in one” or “pay in four” purchases, whether online or in-store. In the UK, users can “snooze” a repayment in the app. However, they pay a small fee to extend the snooze period. The company does not charge default fees and always notifies customers when fees apply.

Zilch vs. credit card

This platform provides services similar to a traditional credit card by extending the payment period. However, repayments are limited to six weeks, and the company does not charge interest. Users also cannot repay via other credit cards or balance transfers. This approach reduces the risk of additional debt.

Zilch corporate

Businesses can partner with Zilch through its ASPN model. By passing ad revenue directly to users, retailers can engage ready-to-spend audiences. In this way, democratizing credit with ad-subsidized payments improves customers’ financial health. Moreover, it adds value to businesses.