Is Open Banking Transforming Fintech and Mobile Payment Services in the UK?

1 min read

Key Takeaways:

  • Zilch, a London-based FinTech startup, is disrupting mobile payment services in the UK using Open Banking technology.
  • Offering a buy now, pay later app, Zilch allows customers to shop anywhere Mastercard is accepted, ensuring convenience and financial control.
  • Zilch also uses soft credit checks to create a personalized affordability profile for each customer, promoting responsible lending.
  • The future of FinTech and mobile payment services is likely to involve increased use of Open Banking, offering more power and control to the consumer.

Open Banking, a system where banks open up their APIs to third parties, has introduced a transformation in the financial sector. An example of these innovative business models is the UK-based FinTech startup, Zilch. Launched in London, Zilch has harnessed the power of Open Banking technology to create a consumer-centric mobile payment service that allows users to buy now and pay later, with full transparency and control over their finances. This is made possible by allowing users to shop wherever Mastercard is accepted, making it an extremely inclusive and accessible service.

Zilch has strategically utilized Open Banking, giving it a definitive edge in the mobile payments sector. It has seamlessly diverged from the traditional banking model to provide its users with a highly convenient and user-friendly app. By allowing its customers to keep track of all their purchases in one place, Zilch offers a simple and intuitive way to remain in control of personal finance.

One of the primary differentiators for Zilch is its use of innovative technology to promote responsible lending. By merging Open Banking technology with soft credit checks, Zilch builds a personalised affordability profile for each customer. This innovative approach ensures consumers don’t find themselves in debt by buying things they can’t afford. Zilch’s Tap & pay-over-time feature is another testament to the firm’s mission of putting their consumers in full control of their money while ensuring maximum convenience.

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Moreover, Zilch’s app architecture is designed to allow users to make purchases online and in-store, whilst keeping all expenditures consolidated in a single place. This comprehensive visibility into one’s finances ensures users can keep track of their repayment timelines. It provides a clear, transparent view of their financial obligations, instilling a sense of financial discipline and responsibility.

As technology advances, the future of mobile payment services and FinTech is expected to involve increased use of Open Banking, as more power is gradually placed in the hands of consumers. Startups like Zilch, that are leveraging this technology, showcase how accessible and transparent financial services can indeed be. This London-based startup’s journey in the FinTech industry looks promising, as they continue to redefine everyday banking using innovative and empowering technology.

Stay connected with Zilch and their journey with their socials and website:

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