The Bank of England recently announced that inflation is expected to reach a record-breaking 13% by the end of this year, and as the country makes its way into a recession with energy prices, and consumer prices rising, people are looking for any way to make their financial situation better.
The Great British Entrepreneur Awards 2021 Entrepreneur of the Year winner, Philip Belamant, has highlighted how his business Zilch could be a safe solution to the problem.
It is no surprise that it has been found that 1 in 12 people turned to buy-now-pay-later (BNPL) providers to pay for their groceries and bills in the six months leading up to March 2022 – and these numbers are set to increase as the rate of inflation continues to rise. And whilst BNPL models can be a quick fix for many, older brands and models come with risks such as late fees and interest rates – which can cause people to get in more trouble than they began with.
Why Zilch over other BNPL models?
Consumers can use Zilch to purchase a range of goods and services and choose between two handy payment options: they can either spread the cost of their purchase over six weeks without paying any interest or late fees, or they can accumulate 2% cash back for future purchases through Zilch’s “Tap and Pay” and “Zilch Rewards” features. These benefits make Zilch preferable over credit cards, which typically don’t offer the same cash back benefits and can come with those heavy interest and late fees.
Given that both short- and long-term credit can pose issues for consumers if not handled responsibly, Zilch doesn’t allow users to pay off their accounts with credit cards. Instead, they measure each user’s affordability, updating its customers’ spending limits based on its proprietary algorithm every time a customer makes a purchase – putting their financial health first!
So, how can they help people during this economic crisis?
Zilch has recently partnered with the global leading credit checking company Experian to enable reciprocal reporting of credit information. Experian’s affordability technologies build on Zilch’s technologies to enable an even deeper understanding of each user’s affordability. This way, Zilch can ensure each of its consumers can afford to borrow, encouraging more responsible spending.
“It’s OK for people to buy fast fashion that ends up in a landfill in six weeks’ time,” said Philip Belamant. “But for food that people need or something that’s essential for their family? No, they should use high-cost credit to pay for this. We just do not understand how you reconcile that logic.”
Zilch is offering consumers the option to use their services on more than just fast fashion websites like some of their competitors are doing, and they are offering people the option to use their BNPL services on things that matter. Consumers across the UK can use Zilch to split the cost of all sorts of purchases, including their energy bills, and grocery shopping.
Spreading the cost of these ever-rising bills can be especially handy during times like this, and Zilch’s offerings could be a game-changer for many people who need to spread the cost of their bills and could be a solution to the ever-growing economic crisis.
Find out more about Zilch here.