Zilch CEO Philip Belamant
(Picture: Zilch )Buy now, pay later business Zilch hit another milestone on its path to dominate the market today as the firm said it had turned a gross profit and surpassed three million users.
The London-based fintech, which offers customers the choice of deferring payment for online purchases, said revenue had tripled in the past six months, while it had now reached profitability across its product suite.
It’s the latest achievement in a period of rapid expansion for the firm as customers with squeezed incomes snub the growing interest rates of credit cards in favour of cheaper alternatives.
It comes after the company became Europe’s fastest unicorn with a valuation of $2 billion in November 2021, and announced an expansion to the US in May 2022 with a new office opened in Miami. The news comes in stark contrast to Swedish buy now, pay later rival Klarna, which in August posted a quadrupling of losses amid higher costs and wider credit losses.
Zilch CEO Philip Belamant said: “Everywhere you look there are high energy bills, rising inflation, and a general sense of tension gripping household finances. That means customers are looking for better more intelligent ways to spend their money.
“We’ve saved customers just over £80 million in fees and interest that we’re giving them back.”
Belamant said Zilch, which is regulated by the UK’s Financial Conduct Authority, had benefitted from the finance watchdog’s increased focus on the consumer credit market, prompting a number of unregulated firms to withdraw their products and allow the firm to tighten its grip on the buy now, pay later market.
Belamant said he was now focused on delivering bottom-line profitability at the firm.
The announcement comes a mere six months after Zilch galloped past the two million user figure, attracting the likes of tech giants Apple who plan to create their own BNPL offering.
