Over the last few years, thousands of retailers have been adding buy-now-pay-later (BNPL) options to their websites, accommodating shoppers who prefer to split the bill over a few weeks rather than paying full amounts upfront. BNPL fills a vital role in the marketplace, especially for customers who don't have a credit card or would otherwise struggle to finance larger payments. When used efficiently, BNPL solutions are excellent ways to finance purchases of all kinds. 

BNPL products have only become more popular at the hands of the COVID-19 crisis, during which the market capitalisation of BNPL operators has soared. ClearScore reports that 39% of online purchases made during 2020 have been processed using a BNPL scheme. Though online shopping was popular before the lockdown, it has become even more prevalent during this turbulent time.

Which BNPL System Should You Use?

BNPL systems provide the accessibility that many customers need when shopping online, particularly during the COVID-19 crisis. But with so many BNPL products on offer, which should you opt for?

Some of the most popular BNPL models include the following.

• Zilch allows you to pay for just 25% of a purchase upfront, before spreading the remaining balance over the following six weeks. Zilch never charges interest, late payments, or any other hidden fees that can catch shoppers out with other providers. Zilch also offers several rewards that you can unlock as you use the unique payment model.

• Klarna allows you to pay for your purchases in monthly instalments and offers credit financing options, which you can spread between six and 36 months depending on purchase type.

• PayPal Credit allows you to shop online with retailers that accept PayPal and receive six months of financing on purchases over £99. Payments are interest-free - but only up to four months.

• Clearpay allows you to pay for your purchases in four instalments, which are due every fortnight from the date of your purchase. Late fees apply if you don't make payments on time. Only available with their partner stores.

• LayBuy allows you to pay for your purchases over six weeks in weekly instalments. Late fees apply if scheduled payments are declined.

• Splitit allows you to use your existing credit card to finance your purchases using monthly payment plans. The international firm uses your existing credit limit, meaning that there is no application process.

• Pagantis allows you to set up flexible payment plans of up to 24 instalments. These instalments are charged to your existing credit card at the end of each month.

Out of these BNPL solutions, Zilch is an increasingly popular choice because the bespoke payment model allows shoppers to spend without any hidden fees or interest anywhere they like (including eBay and Amazon). Customers don't need a credit card and can easily finance their purchases without any catches. Plus, Zilch's retail partners operate simple returns systems with no additional hassle or associated fees, even for customers who would like to return items that they are paying for through Zilch.

Why Zilch?

On average, most Zilch shoppers save over £250 that they would otherwise spend on BNPL interest and fees every year. Here's a breakdown of five additional benefits that Zilch offers customers, aside from its zero-fee, zero-interest benefits.

1. MasterCard Partnership

Zilch offers the first over-the-top BNPL product that allows customers to shop online wherever MasterCard is accepted. The MasterCard partnership is fast making Zilch one of the most popular BNPL choices for shoppers, who can now shop with more brands than ever before - in fact, all of them. Zilch's 'MasterCard' is a virtual card that shoppers can use to make purchases quickly and efficiently without the hassle of entering card details. As Zilch scales its rapidly growing BNPL system, shoppers will soon be able to 'tap and pay later' in-store, too.

'Our unique over-the-top approach to BNPL has been built out of our strong knowledge for instalment cards in developing economies such as South Africa and South America amongst others,' says Philip Belamant, Zilch's founder and CEO. 'We combine the benefits of instalment and card products to offer the best way for our customers to pay overtime, anywhere. We believe that this generation should be able to responsibly have what they want when they want without being financially penalised for the privilege.'

'Zilch is a flourishing fintech which aims to help shoppers manage their cashflows in a way that fits their timeline,' adds Jason Lane, MasterCard's Executive Vice President (Market Development, Europe). 'At MasterCard, we continue to be the partner of choice for fintech across Europe as we strive to help scale innovative payment solutions that improve people's lives.'

2. 5,000+ Retail Partners

Zilch is associated with over 5,000 retail affiliate partners, including Amazon, eBay, Nike, Ali Express, Carphone Warehouse, iTunes, GAME, Sports Direct, Adidas, Hype, Topman, UGG, Boohoo, and ASOS. The over-the-top approach enables the BNPL industry's success by allowing payment systems such as Zilch to connect with consumers instead of retailers.

3. New Funding

Since launching its BETA system in August 2019, Zilch has already generated a huge level of interest, particularly from the young Millennial and Generation Z markets. Now, more than 24,000 customers sign up for a Zilch account every month. As Zilch's popularity continues to grow, the London-based fintech has announced a new USD11m fund to scale its unique BNPL solution. Zilch will use the funds to fast-track the rollout of its product offering to a waiting list of around 65,000 shoppers, who are eagerly anticipating access to Zilch Boost, which allows you to use Zilch for more than your available spend.

4. No Third-Party Integrations

While traditional BNPL products integrate with merchants, Zilch's patent-pending framework doesn't rely on any third-party integrations, making the payment system instantly available to shoppers everywhere and you don't have to change the way you shop.

5. Protection Against Overborrowing

Zilch protects shoppers against over-borrowing by using Open Banking and AI to determine each customer's level of affordability and only funds low-value discretionary purchases. This system means that customers are unlikely to use Zilch as a cash flow management tool, which is proving an important prevention method during the COVID-19 crisis.

Reviews

Customers across the UK have been reaping Zilch's countless benefits, which enable the best shopping experiences. Here are just a few of Zilch's recent reviews.

• 'My experience since its inception has been nothing but positive. The shop choice is absolutely massive also. Nothing else compares at all.' - Leevi, September 2020.

• 'I love this company, never ever had a problem. Loving the new boost and upgrade you have given me. Thank you for being an excellent and honest company.' - Ria, September 2020.

• 'I have never been able to get a proper credit card in the UK due to being from the EU and not having a detailed credit history, but this has proved to be an absolute lifesaver for bigger purchases.' - Roberto, September 2020.

• 'Much better than other similar services, wider range of shops and simple to use.' - Jack, September 2020.

• 'Excellent service, always get back in credit what you pay off, no fuss, runs smoothly, even had a refund which was sorted with no trouble.' - Michael, September 2020.

• 'It's so easy. You literally just pay for your purchases in four instalments, no interest, no late charges, nothing - and you can use it anywhere rather than being limited to very few stores.' - Lucy, June 2020.

Sign up for a Virtual Zilch Card

Signing up for a Zilch virtual MasterCard is easy. UK shoppers only need to provide their debit card details, postal address, mobile phone number, and email address. Once signed up, customers can begin shopping with a virtual card immediately. 

As Zilch rolls out its latest funding, many more shoppers will be able to enjoy the benefits of a virtual Zilch MasterCard and boost upgrade. Sign up to join the waiting list for an account with Boost benefits. 

Read more about Zilch's cutting-edge payment system at www.payzilch.com. You can also follow Zilch on Facebook and Instagram.