Zilch secures an increased securitisation facility with Deutsche Bank, marking significant growth.
- The facility now totals £150m, a boost of £50m, supported by two global credit funds.
- This expansion supports Zilch’s increasing transaction volumes, reaching over 4 million customers.
- Zilch’s ad-subsidised payments network combines advertising and payment processing for consumer benefits.
- The firm continues to operate under FCA regulation, testing new products through its Sandbox Programme.
Buy-now-pay-later (BNPL) company Zilch has enhanced its securitisation facility to £150 million, backed by Deutsche Bank and two global credit funds. This increase by £50 million aims to support annual commerce of up to £10 billion through Zilch’s platform, alongside a rising customer base that has now surpassed 4 million users.
Securitisation, which involves pooling various debt obligations and selling them to investors, plays a critical role in this development for Zilch as it seeks to expand its footprint in the payments industry. The expanded facility helps Zilch increase its consumer lending operations while ensuring compliance with regulatory standards. According to Philip Belamant, CEO and Co-Founder, this reflects growing confidence in their business model and bolsters the resources needed for accelerated growth.
Operating since 2020, Zilch has achieved profitability as of July 2024, with an annual revenue of $130 million. The company is now on par with notable European fintechs such as Revolut, Starling Bank, and Monzo in terms of growth. Zilch provides consumers with the option to pay instantly or spread costs over time with interest-free credit, offering up to 5% cashback on immediate payments, and greater flexibility for higher expenditures.
Zilch’s rapid expansion is underscored by a customer base reaching over 4 million, reflecting the appeal of its integrated debit and credit offerings for both online and offline shopping. The company is focused on merging conventional payment systems with innovative rewards, a strategy that seems to resonate well with consumers. CFO Hugh Courtney has acknowledged the swift business growth over recent months, highlighting Zilch’s robust business model and anticipation of further acceleration into 2025.
Operating under the oversight of the Financial Conduct Authority, Zilch secured a consumer credit licence via the regulator’s Sandbox Programme in April 2020. This allows the company to test new financial products in a controlled environment before wider implementation. Moreover, Zilch set up credit reporting agreements with UK agencies to facilitate customer credit building through interest-free lending options, paving the way for alternatives to traditional costly revolving credit.
In September 2023, Zilch launched its ad-subsidised payments network, which links merchants with consumer spending data to develop personalised offers based on purchase history. This vertically integrated system differentiates Zilch from other payment providers by enabling direct relationships with both retailers and consumers. Highlighting the efficiency of their model, CEO Philip Belamant stated that every pound of finance translates to over £25 of sales, positioning the company to enhance shareholder value and broaden its services.
Zilch’s strategic growth and operational developments reflect its robust position in the fintech industry, poised for further expansion.
