Zilch is a UK-based BNPL (Buy Now, Pay Later) provider, founded in 2018 and publicly launched in London in September 2020. It offers a BNPL product built around a virtual Visa that works with any merchant accepting Visa, rather than a fixed retailer panel, a model the company calls “BNPL 2.0.” Zilch ran on Mastercard’s network from launch until mid-2025, when it signed a multi-year deal with Visa and shifted its card infrastructure over to Visa.
In a funding announcement dated November 2025, Zilch reported more than 5.3 million registered customers and raised over $175 million ($176.7m) in debt and equity, with a $2 billion valuation.
How does Zilch work?
Zilch’s BNPL mechanics (signup, underwriting, and plan selection) sit entirely on the customer side, before any transaction reaches a merchant:
- The customer signs up for the Zilch app, completes a soft credit check and identity verification (with no impact on the customer’s credit score), and receives a personal credit limit.
- The customer picks a payment plan in the app (Pay now, Pay over 6 weeks, or Pay over 3, 6, or 12 months if eligible) before checkout.
- At checkout, the customer pays with the Zilch virtual card via Zilch Anywhere or Tap and Pay through a digital wallet.
None of this is visible to the merchant. Every Zilch payment arrives as a standard Visa transaction, regardless of the plan the customer chose. That’s what lets Zilch work at any merchant already set up to accept Visa.
Where Zilch can be used
Zilch is used anywhere Visa is accepted, online and in-store at any retailer with Zilch Anywhere, and pay in-store with Tap and Pay using a digital wallet.
PSPs and merchants serving UK shoppers can see how Zilch compares with other providers in Akurateco’s guide to UK payment methods.
Is Zilch a credit card?
Zilch isn’t a traditional credit card, according to Zilch’s own Help Center. It offers payment options that can work like one, depending on how a customer wants to pay.
If you choose to spread the cost with Pay over 6 weeks, or Pay over 3, 6, or 12 months if eligible, you pay a portion upfront and the rest over time. That’s similar to how a credit card works. Pay now (similar to a debit card), the app’s other option, takes the full amount immediately instead.
Signing up triggers a soft credit check, which Zilch uses to assess what a customer can afford.
Zilch calculates a personal credit limit at sign-up based on an affordability assessment. It aims to never let a customer borrow more than they believe they can comfortably repay.
Fees, settlement, and refunds overview
Zilch is free to download and use for a standard customer, with no interest, no monthly or annual fees, and no late fees. But per-transaction fees can apply depending on the payment option. Pay now purchases may carry no fee, while Pay over 6 weeks and Pay over 3, 6, or 12 months may incur a fee, which is always shown in the app before checkout.
A Zilch transaction settles like a standard Visa payment, so merchants pay only the usual interchange fee, plus a performance-based commission on completed sales if they join Zilch’s partner network, Ad-Subsidised Payments Network (ASPN). The same goes for settlements. For a merchant, a Zilch purchase settles like a standard Visa transaction through the merchant’s existing acquiring relationship (checked in September 2026).
A Zilch refund runs in three stages: the retailer processes it first (immediate in-store; up to 10 working days online), Zilch then applies it (to the original payment method for Pay now, or by reducing the remaining instalments for Pay-over purchases), and the customer’s bank shows it last, usually within five working days. Most refunds complete within 10 working days total, and scheduled repayments continue as normal while a refund is pending.
Zilch has been regulated by the FCA (Financial Conduct Authority in the UK) since 2020. It entered the FCA’s Regulatory Sandbox Programme in April 2020 and secured full consumer credit authorisation that November, one of the first BNPL providers in the UK to hold it. In December 2025, Zilch said it had separately secured a payments services licence, letting it build and issue payment products in-house rather than through third-party processors.
Pros and cons of Zilch
Pros:
- Flexible ways to pay with all fees disclosed upfront and no hidden charges
- Works via Zilch Anywhere at effectively any online or in-store retailer, not just a fixed in-app merchant list, plus Tap and Pay through a digital wallet
- No late fees on a missed payment
- Thousands of in-app stores are fee-free, and Rewards of up to 5% back are available on Pay now purchases
Cons:
- Fees can apply to Pay over 6 weeks and Pay over 3/6/12 months, and are higher if the customer doesn’t enable their card in the app first or uses Zilch Anywhere
- Pay over 3, 6, or 12 months is limited to certain plans (Zilch Classic and Zilch X) and is subject to eligibility, not guaranteed to every customer
Merchant requirements and setup basics
Zilch’s virtual card (Mastercard at launch, migrated to Visa in 2025) works like any other card, so merchants don’t need a technical integration to accept it. Any merchant already equipped to take Visa payments can accept them automatically.
Using Zilch in a multi-method checkout
Zilch adds coverage without adding a method to build against. It rides on the card rails the merchant already has. What still needs managing sits upstream of settlement. If a merchant also joins Zilch’s partner network (over 5,000 retailers, per the company) for in-app visibility and deals, those commissions run through a separate API and billing cycle from standard card settlement.
Reporting still splits once Zilch sits alongside other methods: standard card settlement runs through the merchant’s usual acquirer, while partner-tier commissions through Zilch’s partner network, ASPN, bill separately, via a distinct API. A payment orchestration platform brings monitoring and reconciliation for Zilch and every other method into one place, rather than juggling separate dashboards.
Integration via Akurateco
Akurateco helps PSPs, acquiring banks, and enterprise merchants expand payment coverage with one orchestration layer across multiple payment methods. If a specific payment method is required for your use case, we can enable it upon request. Reach out to confirm options.
Note: Akurateco provides the gateway and orchestration layer on top of acquirers and does not process transactions itself.
FAQs about Zilch
Where can you use Zilch?
You can use it anywhere in its in-app retailer directory and any other online or in-store retailer that takes Visa via the Zilch Anywhere feature. It also supports in-person Tap and Pay via Apple Pay, Google Pay, or Samsung Pay.
Is Zilch safe?
Zilch has been regulated by the FCA since 2020, when it secured consumer credit authorisation. Later, in December 2025, Zilch added a separate FCA payments services licence.
Can you transfer money from Zilch to a bank account?
Not directly. You can use Zilch Advance, a credit feature, that lets you transfer up to £100 to your bank account ahead of payday for a £2.99 fee, repaid automatically when your income lands.
Is Zilch a credit card?
No, but it offers payment options that can work like a credit card (Pay over 6 weeks, Pay over 3/6/12 months) or like a debit card (Pay now), depending on how a customer chooses to pay.
