Zilch Exception to New FCA Regulations Halt All BNPL Providers
Buy-now-pay-later (BNPL) companies flourished last year at the hands of coronavirus. Following the November lockdown, thousands of Brits felt the financial impact of the pandemic and signed up for BNPL providers to spread the cost of their shopping, especially over a cash-strapped Christmas period. But some providers have been known to catch shoppers out with hidden costs and loopholes, which have led many shoppers to fall into serious debt. As a result, the Financial Conduct Authority (FCA) has taken much-needed steps to tighten its regulations and protect consumers. Their new regulations came into force on 4th February.
Of course, many shoppers rely on BNPL providers to finance their purchases, which is problematic given that the new regulations could stop most providers in their tracks. These providers must now adapt their services to meet the new regulations. But this will require work, and BNPL providers will struggle to achieve this immediately. Now, the only BNPL provider that currently fulfils the FCA’s new criteria is the pioneering UKfintech company Zilch.
It’s no surprise that shoppers throughout the UK are signing up in their thousands to spread their costs with the innovative BNPL provider, especially now that Zilch’s competitors have serious work to do. Zilch has gained much traction in the UK over the past year. Many shoppers opt for the provider over its competitors to enjoy its six-week financing schedule, which is easy to use and doesn’t hit customers with late fees or other hidden costs.