Zilch hits 3.5 million users

'Buy now, pay later' provider Zilch has passed 3.5 million customers in three years since its launch.

The company, which differs from rivals such as Klarna in that offers rewards to customers and is subsidised by adverts, launched in 2021 amid the pandemic.

Nonetheless, it saw customer numbers and its value soar in a short space of time, adding 3 million of its customers in its first two years and becoming a fintech unicorn in its first 18 months with a $2bn valuation.

"In just 36 months, almost 10 per cent of the UK adult working population is now a registered customer," Zilch CEO and co-founder Philip Belamant said.

"Many customers are using Zilch daily with our average customer using the product 100 times a year. Zilch has already driven over £1.5bn in commerce to retailers and put over £300m of savings and rewards back into the pockets of customers. And this is just the beginning."

While the company is still in growth mode, its rate of customer growth appears to have slowed compared with last year but Belamant says the company is nearing profitability.

“Whilst we remain acutely aware of the many challenges that lie ahead, I am very encouraged by the fact our margins are currently at their highest, credit losses at record lows and revenues the strongest we’ve ever seen," he said.

"Exceptional growth in fundamental unit economics with substantial gross profit margins holds Zilch on a clear course to profitability and beyond. We are also currently on track to process more sales in the next 12 months than we have in Zilch’s history to date," he added.