Zilch Review: Revolutionizing BNPL with Zero-Interest and Cashback Rewards

Zilch is transforming the buy now, pay later (BNPL) landscape with its unique zero-interest, cashback, and virtual Mastercard offering. Unlike traditional BNPL services, Zilch lets users split payments into four interest-free installments while earning cashback rewards. With a focus on financial flexibility, transparency, and customer benefits, Zilch stands out as a compelling alternative to credit cards and conventional BNPL providers.

In this detailed review, we’ll cover Zilch’s services, features, pros and cons, pricing, and how it compares to other BNPL platforms.

Key Findings

Pros

• Zero-Interest Payments:
• Pay over six weeks in four installments without interest.
• Cashback Rewards:
• Earn up to 5% cashback when you pay in full.
• Flexible Payment Options:
• Choose between BNPL or pay in full with cashback.
• Wide Retailer Network:
• Accepted at millions of stores globally.
• Instant Approval:
• Quick sign-up with instant virtual Mastercard issuance.
• No Hard Credit Checks:
• Uses soft credit checks, preserving your credit score.

Cons

• Late Payment Fees:
• £2.50 late fee if a payment is missed.
• Limited to Mastercard:
• Only works with Mastercard-supported retailers.
• Potential Overspending:
• Easy access to BNPL may lead to impulse buying.
• Limited Geographic Reach:
• Primarily available in the UK and US, limiting global accessibility.
• No Physical Card:
• The service relies solely on a virtual card.

About Zilch

Launched in 2018, Zilch is a UK-based fintech company offering a zero-interest BNPL solution. It integrates cashback rewards into its service, making it one of the few BNPL providers that rewards users for early or full payments. Zilch’s model differs from traditional BNPL platforms by focusing on financial transparency and customer benefits, rather than just deferred payments.

Mission and Values

Zilch’s mission centers around responsible spending and financial flexibility. The company prioritizes:

• Zero-Interest Credit:
• Making BNPL accessible without interest traps.
• Financial Well-Being:
• Encouraging responsible borrowing through smart payment structures.
• Rewarding Loyalty:
• Providing cashback incentives for full payments.
• Transparency and Fairness:
• No hidden fees or complex terms.

Services and Features

Zilch offers a range of user-centric BNPL services designed to promote flexible and responsible spending.

1. Buy Now, Pay Later (BNPL)

Zilch’s core service allows users to split payments into four equal instalments over six weeks, all without interest.

• How It Works:
• Make a purchase with 25% upfront payment.
• Pay the remaining 75% in three biweekly instalments.
• No interest or hidden charges.
• Key Features:
• Zero Interest: No additional cost for spreading payments.
• Flexible Repayments: Manageable biweekly payments.
• Soft Credit Checks: No hard inquiry on your credit report.
• Benefits:
• Increased Purchasing Power: Spread costs over time.
• No Interest Fees: Keep borrowing costs low.
• Credit Score Safety: No negative impact from soft checks.

2. Pay in Full with Cashback

Zilch gives customers the option to pay in full immediately and earn up to 5% cashback.

• How It Works:
• Select Pay in Full at checkout.
• Earn instant cashback rewards credited to your Zilch account.
• Key Features:
• Cashback on Every Purchase: Rewards applied instantly.
• Flexible Spending: Use cashback for future purchases.
• No Interest or Fees: A risk-free payment option.
• Benefits:
• Save While You Spend: Cashback incentives reduce overall spending.
• Rewarding Loyalty: Continuous benefits for frequent users.
• Boosted Savings: Cashback accumulates over time.

3. Zilch Virtual Mastercard

Zilch offers a virtual Mastercard that allows users to shop at millions of online and in-store retailers.

• How It Works:
• Users receive a digital Mastercard upon signup.
• Can be added to Apple Pay or Google Pay for contactless payments.
• Key Features:
• Instant Issuance: Use the card immediately after signup.
• Global Acceptance: Accepted at Mastercard-compatible retailers.
• Secure Payments: Encrypted for safe transactions.
• Benefits:
• Convenience: Shop anywhere Mastercard is accepted.
• No Physical Card Needed: Fully digital and eco-friendly.
• Instant Access: Start shopping right away.

4. Rewards and Cashback Program

Zilch offers one of the most generous cashback programs in the BNPL sector.

• How It Works:
• Pay in full and earn up to 5% cashback.
• Use cashback rewards toward future purchases.
• Key Features:
• Immediate Cashback: Rewards are instantly available.
• Flexible Redemption: Apply cashback at checkout.
• No Expiry: Rewards do not expire.
• Benefits:
• Ongoing Savings: Cashback reduces overall costs.
• Loyalty Incentives: Encourages full, responsible payments.
• Spending Flexibility: Redeem anytime.

Technology and Innovation

Zilch employs cutting-edge financial technology to enhance its BNPL services.

1. Instant Virtual Card Issuance

Upon registration, Zilch users are instantly issued a virtual Mastercard for immediate shopping.

• Key Features:
• Real-Time Activation: No waiting period.
• Contactless Payments: Compatible with Apple Pay and Google Pay.
• Benefits:
• Convenience: Start shopping immediately.
• Contactless Security: Safer transactions.

2. AI-Powered Credit Decisioning

Zilch uses AI algorithms to assess users’ financial profiles.

• Key Features:
• Soft Credit Checks: Preserves credit score.
• Real-Time Approval: Instant decisions.
• Benefits:
• Accessibility: More users approved.
• Credit Safety: No hard inquiries.

Use Cases and Target Audience

Zilch appeals to a broad range of consumers seeking flexible payment options and cashback rewards.

1. Everyday Shoppers

• Flexible Payments: Spread costs over time.
• Cashback Rewards: Save while shopping.
• Convenient Checkout: Virtual Mastercard for online and in-store use.

2. Budget-Conscious Consumers

• Zero-Interest BNPL: Avoid interest fees.
• Controlled Spending: Structured payments prevent overspending.
• Cashback Benefits: Reduce expenses with rewards.

3. Frequent Online Shoppers

• Seamless Integration: Compatible with major retailers.
• Instant Card Issuance: No waiting to start shopping.
• Enhanced Security: Safe and contactless payments.

Pricing and Fees

Zilch offers a transparent pricing model with no hidden fees.

Pricing Structure

• BNPL Service:
• Four interest-free instalments over six weeks.
• Late Payment Fee:
• £2.50 per missed payment.

Billing and Payments

• Biweekly Payments:
• Spread over three instalments.
• Instant Cashback:
• Applied immediately after full payments.

A Leading BNPL Provider with Added Rewards

Zilch stands out as a game-changer in the BNPL market by offering zero-interest payments and cashback rewards. Its flexible payment options, instant virtual Mastercard issuance, and broad retailer acceptance make it a top choice for consumers seeking cost-effective, transparent, and rewarding payment solutions. With its focus on financial responsibility and customer incentives, Zilch continues to set new standards in the BNPL sector.