Will it work? Partnering with StepChange can help Zilch’s customers manage their debt, and the fintech’s stance could win it new users and bolster its reputation. It could also keep Zilch ahead of impending legislation and cut the chance of FCA penalties.
However, needing to involve debt charities highlights BNPL’s major flaw: It can potentially exacerbate shoppers’ financial woes by normalizing unsustainable borrowing. And supporting struggling users won’t eradicate this problem.
Keep reading: Find out more about the challenges BNPL firms face in our Era of Uncertainty: Buy Now, Pay Later report.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.