What's Happening?
Zilch, a London-based consumer payments platform, has obtained a payments services licence from the Financial Conduct Authority (FCA), allowing it to develop payment methods internally without relying
on third-party arrangements. This move is complemented by Zilch becoming a principal member of Visa for the first time. The FCA authorisation enables Zilch to accelerate its product development and respond to emerging payment technologies, such as stablecoins. The company, which achieved quarterly profitability in July 2024, operates an ad-subsidised payments network that combines advertising revenue with payment processing. Zilch plans to launch two new products: Zilch Pay, a one-click checkout experience, and Intelligent Commerce, an AI platform for real-time merchant insights.
Why It's Important?
The acquisition of the FCA payments licence and Visa membership marks a significant step for Zilch in expanding its payment processing capabilities. This development allows Zilch to innovate and introduce new payment solutions more rapidly, potentially increasing its market share in the competitive financial technology sector. By reducing dependency on intermediaries, Zilch can streamline operations and potentially lower costs for consumers. The move also positions Zilch to adapt to future payment technologies, which could enhance its offerings and attract more users. This expansion could influence the broader fintech landscape by encouraging other companies to pursue similar authorisations to remain competitive.
What's Next?
Zilch is preparing to launch its new products, Zilch Pay and Intelligent Commerce, in the first half of 2026. These offerings are expected to enhance user experience and increase transaction volumes. As Zilch continues to grow, it may explore further partnerships or technological advancements to maintain its competitive edge. The company's ability to adapt to emerging payment technologies will be crucial in sustaining its growth and profitability. Stakeholders, including investors and consumers, will likely monitor Zilch's progress and the impact of its new products on the market.
