Zilch has announced a partnership with Visa and launched its first physical card. Thus, enabling customers to shop in bricks and mortar stores as well as online. While online payments is a growing phenomenon, cards are still a significant factor, that is unlikely to completely disappear. In 2024 34% of eCommerce payments used cash and cards, and 62% of POS transactions used cash and cards.
Worldpay estimates that by 2030 digital ecommerce payments, at 79% share, will dwarf cash and cards at 21%. Digital Payments will also exceed cash and cards for POS transactions (53% vs 47%).
The new multi-year partnership will enable Zilch gain access to the Visa global network of over 150 million merchants. It will also enable consumers to have a physical card to supplement their online payment options. With 80% of adults in the UK not yet having access to mobile wallets it becomes a trusted gateway for starting that ability.
A Zilch Visa card along with a mobile wallet will enable the consumer to track all expenses in a single location. And enhances the management of their personal finances. For Zilch, it also means that they can scale operations using the Visa Payments infrastructure. They estimate that it will shift billions of pounds in annual transactions. Thus, enabling them to focus on innovation rather than investing in a payments infrastructure.
Speaking on stage at Money 20/20 Europe in Amsterdam Philip Belamant Zilch CEO and Co-Founder, said, “Today’s announcement is about scaling reach, deepening utility, and setting the stage for the next era of Zilch. By partnering with Visa – a global leader in payments – we’ve plugged our AI-driven engine into a network that touches over 150 million merchants worldwide.
“This move will allow us to fully deploy our ad-enabled payments technology across both digital and physical retail. Bringing measurable savings to consumers and margin efficiencies to merchants.
With nearly 80% of UK adults still not regularly using mobile wallets, the physical card is a strategic unlock to greater transaction volume. This move is Zilch executing its model at scale – removing cost from payments, increasing behavioural intelligence, and converting that into enduring value for both users and the ecosystem.”
Visa card available to Zilch customers soon
From September, Zilch customers will be able to apply for a physical Visa card. The cards will be available in different shades of the Zilch green. Details of whether these shades have any meaning are unclear. The option will enable 50% of Zilch customers, who only use the payment platform for online shopping via digital wallets, to use tap and pay in store using a physical card worldwide.
Mandy Lamb, Managing Director, UK & Ireland at Visa, commented, “It’s fantastic to welcome Zilch into the Visa ecosystem, as we work together to deliver word-class products and solutions to help them scale.
“Fintechs are shaping the future of commerce and we’re proud to support UK unicorns such as Zilch with their growth ambitions as they provide innovative services to consumers and businesses, while driving financial inclusion through their core offering.”
The physical card will mean that Zilch customers will be able to use the Zilch payment system for more purchases. Including those that online Zilch payments have not supported. These include home maintenance, hotel check-ins or car rentals.
The card will mean that Zilch payments using the Visa card will be accepted in many businesses worldwide, with merchants in over 200 countries accepting Visa payments.
Enterprise Times: What does this mean
For Zilch, this means that they can leverage the Visa network and scale their operations without investing in additional infrastructure. However, while this will allow them to further invest in innovative features for the online platform, they will need to innovate to maintain a competitive advantage over other payment platforms.
Zilch claims that one in seven UK working adults are Zilch customers using the virtual payment card within the Zilch app or a mobile wallet. It has already processed over £4 billion of purchases both online and in-store. It will be interesting to see whether that number rises and whether the number of active customers changes.
Also, with the partnership with Visa, does this open up the opportunity for Zilch to expand faster outside the UK market?
