It’s been a tough year for fintechs, with buy now, pay later (BNPL) companies getting hit harder than most. In addition to the continuing financial ripples caused by a variety of global events, international governments the world over are rushing to impose new regulations on BNPL entities.
Amid that context, British BNPL service provider Zilch has been all the more impressive with its continued success. Adding to a $110 million Series C fundraising round in November, the company has brought in another $50 million, helping it maintain its previous $2 billion valuation.
Ongoing market upsets have been the downfall of many of Zilch’s competitors in the fintech world—Swedish rival Klarna being a key example. However, according to Co-Founder and Chief Executive Officer Phil Belamant, it’s precisely because of ongoing financial turmoil that Zilch is more essential to its customers than ever.
“In a world of rising interest rates and inflation, it has never been more important for customers to have access to a payment product that they can depend on for savings, deals, and cash flow management with no interest or late fees of any kind,” said Belamant. “Open Banking data shows how customers of all ages are migrating away from traditional high-cost credit cards or overdrafts in favor of services like Zilch—saving them millions.”