In the world of Buy Now, Pay Later (BNPL) services, Zilch has quickly become a standout option. With its flexible payment options, cashback rewards, and no-interest structure, Zilch is reshaping how we think about managing payments. Whether you’re a seasoned BNPL user or new to the concept, this guide will walk you through everything you need to know about Zilch, how it works, and the benefits (and drawbacks) of using it.

What is Zilch?

Zilch is a UK-based BNPL (Buy Now, Pay Later) service that allows users to shop and spread the cost of purchases over four equal instalments, with no interest and no fees, as long as payments are made on time. Unlike traditional credit cards, Zilch operates on a flexible, interest-free model. It provides two options: paying in full upfront (earning cashback) or splitting payments into instalments.

Available both in-store (via Apple Pay or Google Pay) and online, Zilch gives you the flexibility to manage purchases across a variety of retailers. Whether you’re shopping for clothes, electronics, or groceries, Zilch offers a convenient and affordable way to spread the cost. Plus, you can earn cashback rewards on purchases, making it even more appealing.

How Zilch Works

1. Sign Up: Create a free account on the Zilch app or website. You’ll need to link a valid debit card to get started.
2. Shop Anywhere: Zilch works wherever Mastercard is accepted, both online and in-store. You can shop at popular retailers like Amazon, eBay, Nike, and more.
3. Choose Your Payment Option:
   • Pay in Full Upfront: Receive 0.5% to 2% cashback on qualifying purchases.
   • Pay in Instalments: Split your purchase into four equal payments every two weeks. A £2.50 fee applies to this option.
4. Complete Payment: After making a purchase, repayments are automatically deducted from your linked debit card. You can also set up autopay for convenience.

Zilch Cashback Rewards: How It Works

Zilch’s cashback rewards are a key selling point, allowing you to earn a small but valuable percentage back on your purchases. Here’s how it works:

• Earn Cashback: Zilch offers cashback on almost every purchase you make. You’ll typically earn between 0.5% and 2% depending on the retailer and your payment method.
• Automatic Cashback: The cashback is credited to your account automatically, so there’s no need to manually track or claim rewards.
• Use Your Cashback: Once credited, you can either keep the cashback as a balance in your Zilch account or use it towards future purchases.

How to Qualify for Zilch’s £5 Sign-Up Bonus

Zilch offers an attractive £5 sign-up bonus to new users. Here’s how you can qualify:

1. Sign Up: Create an account on the Zilch app or website and link a valid debit card.

1. Complete Verification: Finish the verification process, including email and card linking.
2. Add Your Virtual Card: Add the virtual Zilch card to Apple Pay or Google Pay for in-store purchases.
3. Make a ‘Tap and Pay’ Transaction: Make a small in-store purchase using your Zilch card (for example, a 15p item at the supermarket).
4. Claim Your £5 Reward: After the purchase, £5 will be credited to your Zilch account.
5. Redeem Your £5: You can use your £5 reward at participating retailers like Amazon or eBay, or exchange it for gift cards.

Zilch Review 2024: Pros and Cons

Pros of Using Zilch

1. No Interest or Late Fees: Zilch doesn’t charge interest or late fees as long as payments are made on time. This makes it an affordable option compared to high-interest credit cards.
2. Generous Cashback Rewards: With cashback rates between 0.5% and 2% on qualifying purchases, Zilch rewards users for their spending.
3. Flexible Payment Options: You can choose to pay in full upfront or split the cost into four equal instalments.
4. Wide Availability: Zilch can be used at any retailer that accepts Mastercard, both online and in-store.
5. Easy Sign-Up Process: The registration process is simple, and Zilch runs a soft credit check, which won’t affect your credit score.

Cons of Using Zilch

1. Limited to Mastercard-Eligible Stores: While most major retailers accept Mastercard, you may encounter some stores that do not accept Zilch.
2. Short Repayment Period: The six-week repayment period for instalments might be too short for larger purchases, especially if your budget is tight.
3. Potential for Overspending: Like other BNPL services, Zilch could encourage overspending if not used responsibly. It’s important to make sure you can afford to repay any instalments.
4. No Credit Building: Zilch does not currently report to credit bureaus, so it won’t help you build your credit score over time.

Conclusion: Is Zilch Right for You?

Zilch offers an excellent solution for managing payments and earning rewards, especially if you’re someone who can manage their spending responsibly. The lack of interest and late fees, along with the cashback rewards, makes it an attractive option for those looking for flexibility without the traditional pitfalls of credit cards. Whether you’re buying a new gadget or shopping for groceries, Zilch can help make purchases more manageable.

However, like any BNPL service, Zilch should be used with caution. Only use it for purchases you can afford to repay in the short term, and make sure you can meet your payment deadlines to avoid any penalties.

If you’re ready to start earning cashback and managing your purchases with Zilch, sign up now and claim your £5 reward.