Zilch is transforming how the Buy-Now-Pay-Later industry works from the original merchant-centred model, BNPL 1.0, to the new model BNPL 2.0, which is customer-centred. The BNPL 2.0 model gives customers value by extending credit whose limit is solely dependent on the customers’ spending habits and ability to pay. This BNPL 2.0 model was started by Zilch’s co-founder and CEO, Philip Belamant, in 2020. Since then, it has grown fast, and companies like Apple are looking to adopt it for various reasons.
Zilch has established a broad customer base since it launched in 2020 and has many users joining daily. It has over 2 million users, and more than 250,000 new users are registered monthly. It has a growth rate that at least doubles the growth rate of any of its competitors in the UK. The company has also opened branches in the US and is already having a surge in new registrations.
During its formation, Zilch’s CEO Philip Belamant envisioned a BNPL model that was fundamentally different from the existing models. While traditional models work with sellers, Zilch works directly with customers. Zilch also has an affordability algorithm that updates users’ spending habits after every transaction. This ensures that the customer’s affordability is updated even as their spending habits evolve. On the other hand, companies like Afterpay and Klarna that use the traditional model only check a customer’s affordability when they request an upgrade on their credit limit.
Although Apple’s ‘Apple Pay Later’ is modelled after Zilch, there are a few differences between the two. While Philip Belamant’s Zilch is accessible to everyone, Tim Cook’s Apple Pay Later will only be accessible to iOS users. While Zilch users can use their Zilch cards continuously with no minimum usage, Apple users will have to create new cards every time they want to make a new transaction and must spend at least $50.
Original source to learn more: https://medium.com/@philipbelamant