Open banking platform Yapily is to partner payments technology company Zilch, in a deal it says “will provide millions of people with better access to 0 per cent interest swift repayment credit”.
The partnership marks the first time Yapily has teamed up with a provider of consumer credit via buy now pay later (BNPL), a move the company says will help it more accurately determine an individual’s risk and affordability profile.
It said the tie-up “makes it easier to provide Zilch’s three million customers with credit options that are tailored to their specific financial situation”.
Recent research by Yapily of 2,000 full-time professionals in the UK found that 59 per cent had used credit cards to supplement their income over the past 12 months. Meanwhile, 34 per cent have used overdrafts, 21 per cent have taken out personal loans, and 9 per cent have taken out payday loans.
The study also found that those earning £15,000 or less were the highest users of personal loans over the past 12 months, with 26 per cent of respondents in that salary bracket having used them.
Data from Zilch’s shows that interest on credit cards alone is costing the British public an estimated £15bn a year – or £41m a day.
And figures released by The Money Charity showed that credit card balances have increased by £500m per month over the last 12 months in the UK, rising from £55bn in January 2022 to almost £64bn in January 2023.
“I believe we are probably at the early stage of seeing the greatest consumer shift in payments in a quarter century, since PayPal was founded,” said Philip Belamant, chief executive and co-founder of Zilch. “In the context of the cost of living crisis, it’s never been more critical for people to have access to 0 per cent interest responsible credit when managing cashflow. That’s what this new partnership with Yapily embraces – helping Zilch to achieve by maximising the consumer benefits of open banking technology.”
“Over five million people in the UK have little to no credit history, greatly reducing their access to mainstream financial services,” said Stefano Vaccino, chief executive and founder of Yapily. “In times like these, it’s important that everyone has access to the credit they need, when they need it most. But critically, this must be based on what they can actually afford at risk of falling on even harder times.
“It’s great to see more lenders like Zilch turn to open banking to meet the needs of individual borrowers. I look forward to watching our partnership grow and enabling Zilch to deliver fairer credit to millions of people now and in the future.”
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