Zilch has launched a new credit payment option allowing customers to spread interest-free repayments for larger purchases over three months.

The payment network’s new pay over three months option supplements its pre-existing option for customers to pay now or spread payments over a six-week period.

Zilch said the new option represents one of the longest-duration loans provided by any major UK FinTech, offering zero-interest regulated credit payments and noted customers’ three-month borrowing will be capped at “personalised and dynamic affordability limits".

Customers will benefit from the same “industry-leading consumer safeguards” given that it will offer the payment option as a regulated product under its FCA consumer credit licence, the FinTech added, noting that the option would also allow customers to build their credit scores each month through its reporting agreements with the UK’s leading Credit Reference Agencies.

“This new payment option is tailored for significant purchases or emergency moments, such as buying electronics, car tyres or home repairs like when the boiler breaks,” said Zilich chief executive and co-founder Philip Belamant. “As Zilch is FCA-regulated, customers can spend with the confidence that every payment over £100 is covered under section 75 of the Consumer Credit Act.”

In September 2023, Zilch opened markets for trading at the London Stock Exchange in celebration of its third birthday.

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