Zilch Secures $176.7 Million to Accelerate AI-Driven Payments Revolution

London-based fintech Zilch, a pioneering force in the buy now, pay later (BNPL) and credit payments ecosystem, has successfully secured $176.7 million in new funding. The round, led by existing investors, underscores growing confidence in the company’s unique business model that merges responsible credit access with cutting-edge AI-driven financial insights.

This fresh capital infusion positions Zilch at the forefront of the next wave of AI-powered payment innovations, enabling the company to strengthen its product offerings, expand across key markets, and further refine its consumer-centric financial technology.

A New Era in Smart Payments

Founded in 2018 by Philip Belamant and Sean O’Connor, Zilch has rapidly evolved from a UK-based BNPL startup into a global fintech leader focused on empowering consumers to spend responsibly. Its hybrid model—bridging credit, debit, and rewards—allows users to “pay now” and earn cashback or “pay later” in installments, interest-free.

What sets Zilch apart is its AI-first approach to consumer financial health. Using advanced data analytics, Zilch can predict spending behaviors, assess affordability in real-time, and guide users toward more sustainable financial decisions.

The latest funding round will significantly boost the company’s ability to leverage AI and machine learning (ML) tools across its product ecosystem—automating risk assessment, fraud detection, and credit decisioning while maintaining compliance with evolving regulations.

Strategic Investment for Long-Term Growth

This $176.7 million raise follows Zilch’s earlier funding success, which propelled it to unicorn status in 2021. With its valuation now exceeding $2 billion, Zilch remains one of Europe’s fastest-growing fintech companies.

The newly raised capital will be channeled toward three major objectives:

1. AI-Driven Product Development: Enhancing the AI infrastructure to personalize spending recommendations, credit approvals, and financial education tools for customers.
2. Global Market Expansion: Scaling operations across the US and European markets, where demand for transparent, ethical BNPL alternatives continues to rise.
3. Regulatory and Compliance Investment: Strengthening partnerships with regulators and banking institutions to ensure responsible lending and data protection.

According to Philip Belamant, CEO and Co-founder of Zilch, the funding is not just about scaling numbers but about “building smarter, more responsible financial ecosystems that empower everyday consumers through AI and data transparency.”

AI as the Core Engine

Zilch’s vision of AI-driven financial empowerment aligns with the broader fintech movement toward personalized, predictive, and preventative finance. Instead of relying solely on traditional credit scores, Zilch’s AI models analyze behavioral data such as purchase frequency, repayment patterns, and income trends.

This enables real-time affordability checks and proactive credit management—a major differentiator in an era where fintechs are being urged to prevent over-lending and consumer debt spirals.

The firm’s internal AI platform is designed to mitigate financial stress, offering reminders, insights, and spending nudges that keep users informed and in control. Over time, these AI-driven insights are expected to evolve into autonomous financial assistants, helping customers make smarter decisions with minimal friction.

Responsible Lending Meets Growth Ambition

While BNPL services have faced regulatory scrutiny worldwide, Zilch has consistently positioned itself as a transparent and compliant operator. The company works closely with the UK Financial Conduct Authority (FCA) and other global regulators to ensure that its lending practices are ethical and consumer-friendly.

Its “Pay Over Time” model includes features such as upfront affordability checks, clear repayment schedules, and spending limits based on responsible borrowing patterns.

By combining these safeguards with AI-powered risk analytics, Zilch aims to balance growth with responsibility—two goals that are often at odds in the fast-evolving fintech space.

Expanding Global Reach

Zilch’s rapid ascent in the UK and its growing presence in the United States signal a strong appetite for hybrid payment solutions that blend convenience, flexibility, and accountability. The company already serves millions of users and partners with thousands of retailers, including major global brands.

With this funding, Zilch plans to strengthen its footprint in North America, enhance merchant partnerships, and build cross-border payment solutions to facilitate seamless consumer transactions worldwide.

The company’s upcoming initiatives include exploring embedded finance integrations, allowing retailers and e-commerce platforms to offer Zilch’s AI-based payment tools natively within their checkout systems.

Investor Confidence and Fintech Resilience

The funding round was led by existing institutional investors, who have shown consistent support for Zilch’s vision. This ongoing confidence reflects Zilch’s ability to balance innovation with profitability—an increasingly rare feat in the volatile fintech landscape.

Despite global headwinds affecting many fintech valuations, Zilch has maintained steady revenue growth and continued user acquisition. Its AI-led profitability model—which reduces default rates through predictive analytics—has become a benchmark for sustainable fintech scaling.

AI-Driven Financial Inclusion

Beyond profit and growth, Zilch’s mission centers on financial inclusion. By offering zero-interest credit and data-driven insights, it empowers individuals who might otherwise be excluded from traditional credit systems.

The company’s AI tools analyze user data to build dynamic financial profiles, enabling access to fair, personalized credit options—especially for younger users or those without established credit histories.

This commitment aligns with broader global fintech trends toward democratizing access to financial tools and education, ensuring that digital transformation benefits all users—not just those at the top of the financial pyramid.

Industry Impact and the Future of AI in Fintech

Zilch’s success story underscores how AI is redefining the future of payments. The company is part of a new generation of fintechs using data intelligence to transform how consumers borrow, spend, and save.

By merging AI analytics with human-centered design, Zilch is paving the way for a new class of “intelligent credit platforms”—systems that can predict needs, prevent debt, and personalize rewards.

The broader industry is watching closely, as Zilch’s model could inspire similar innovations among global fintechs seeking to integrate AI responsibly and profitably.

Conclusion

With $176.7 million in fresh funding, Zilch stands poised to revolutionize the payments ecosystem through AI-powered innovation and responsible credit management.

The company’s next phase will focus on scaling its intelligent financial products globally, enhancing customer experience through automation, and solidifying its role as a leader in AI-driven consumer finance.

As the fintech industry shifts toward smarter, data-led systems, Zilch’s vision—where technology empowers financial well-being rather than complicates it—represents the next great leap in the evolution of digital finance.

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