Zilch Technology Ltd. is preparing to become the latest entrant in the U.S. buy now, pay later market. The move hinges on the London-based company’s acquisition of San Francisco-based debt-funding platform Neptune Financial & Management Services LLC (NepFin), a deal Zilch announced on Thursday. The terms were not disclosed.
The acquisition follows a recent extension of a Series B funding round that raised an additional $110 million for Zilch from Goldman Sachs and DMG Ventures. The additional funding came on top of the $80 million raised earlier in the round.
Zilch’s entry into a crowded U.S. market is not without challenges. The U.S. BNPL business has seen several partnerships struck by incumbents in recent months to expand their offerings, such as Affirm Inc.’s partnership deals with e-commerce platforms Amazon.com Inc. and Shopify Inc. Other major BNPL players, such as PayPal Holdings Inc., have taken steps to make their offerings more enticing to consumers. Last month, PayPal dropped late fees for missed payments on its installment products in the United States, the United Kingdom, and France, effective Oct. 1.
“The BNPL market in the U.S. is seeing more partnerships which means it is a mature market. It’s a tough time to get in,” says Sheridan Trent, a research analyst for The Strawhecker Group.
New research from The Strawhecker Group analyzes key trends and consumer attitudes.
Download a free infographic covering several findings from the full report.
Consumers have increasingly adopted Buy Now, Pay Later (BNPL) services for multiple reasons; a desire for financial flexibility, a way to avoid incurring credit card debt, or to purchase items outside of their budgets. However, despite its popularity, consumer debt and missed payments have led to calls for additional research and regulation. Read the press release.
To take a closer look, The Strawhecker Group (TSG) conducted a survey of over 1,500 U.S. consumers in early 2021 with the goal of understanding domestic attitudes and perspectives on the use of BNPL services. The complete findings, a selection of BNPL provider profiles, and market landscape details can be found in the firm’s new report Buy Now, Pay Later: An Analysis of Key Trends and Consumer Attitudes.
Highlights of this extensive 81-page report include:
- Buy Now, Pay Later Background
- Key Players in the Buy Now, Pay Later Space
- Buy Now, Pay Later Consumer Survey
- Concluding Thoughts: The Future of Buy Now, Pay Later