Zilch review: is 0% buy now pay later worth using?

Buy now pay later gets a bad reputation, and some of it is deserved. But the blanket "BNPL is dangerous" take misses something: not all BNPL apps work the same way, and one of them — Zilch — is genuinely different enough to be worth a proper look.

I signed up to Zilch in 2025 using a referral code, claimed the £5 free credit, and have been using it on and off since. This review covers what I've found — good and bad.

What makes Zilch different from other BNPL apps

The headline difference is universal acceptance. Klarna and Clearpay only work at specific partner retailers. Zilch gives you a virtual Mastercard, which means it works everywhere — online and in-store, including at the self-checkout in Tesco if you want.

That changes what BNPL can be used for. With Klarna, you're limited to whichever fashion or electronics sites have integrated it. With Zilch, you can spread the cost of a car service, a vet bill, or a birthday meal. Whether that's a good thing depends entirely on your self-discipline — more on that below.

How Zilch works day-to-day

You download the app, verify your identity (soft credit check, no impact on your score), and get a virtual Mastercard. Add it to Apple Pay or Google Pay and you're set.

Every time you make a purchase through the app, you choose one of two modes:

Pay in 6 weeks (0% interest)

Your purchase is split into 4 equal payments over 6 weeks. The first 25% is charged immediately, then three more instalments follow at two-week intervals. No interest, no fees — as long as you pay on time.

Pay in full (2% cashback)

Pay upfront using your linked debit card and earn 2% back in Zilch rewards. The cashback accumulates in your Zilch balance and is applied as a discount on future purchases.

This second mode is what makes Zilch interesting even if you never want to spread payments. 2% cashback on everything, everywhere Mastercard is accepted is better than most debit cards and many credit cards offer. I use this mode more than the instalment option.

The 2% cashback — is it actually good?

Compared to alternatives:

2% with no annual fee and no acceptance restrictions is strong. The catch is you have to initiate every payment through the Zilch app — you can't just tap your card without thinking. Some people find this friction annoying; I find it makes me slightly more intentional about spending, which is probably a net positive.

What I actually use Zilch for

In practice, I use Zilch in two ways:

Pay in full for the 2% back — groceries, fuel, subscriptions, eating out. Anything I'd buy anyway. The cashback is modest per transaction but compounds across a month of everyday spending.

Pay in 6 weeks occasionally — for larger one-off purchases where I'd rather spread the cost without paying credit card interest. I've used it for a new pair of trainers and a vet bill. Both times the four instalments cleared without friction.

I don't use it for recurring subscriptions because managing them through the app adds complexity that a regular direct debit doesn't have.

The risks — and who should avoid Zilch

BNPL criticism exists for a reason. Here's where Zilch can go wrong:

Overspending is the obvious risk. The Pay in 6 weeks option makes purchases feel cheaper than they are. If you're someone who struggles with impulse buying, adding another way to defer payment is the opposite of what you need.

Missed payments can hurt your credit. Zilch reports to credit reference agencies. Miss an instalment and it can appear on your credit file. This is actually a good thing from a transparency standpoint — Klarna historically didn't report, which meant people accumulated BNPL debt that was invisible to lenders.

Multiple BNPL commitments stack up. Using Zilch, Klarna, and Clearpay simultaneously can mean you have several small debts across different apps that collectively add up to a large commitment. Track everything or use just one.

Who should skip Zilch:

• Anyone with existing debt they're struggling to manage
• People who tend to impulse-buy and regret it later
• Anyone who doesn't want to manage payments through a separate app

Zilch vs Klarna vs Clearpay — the full comparison

Zilch wins on flexibility and cashback. Universal acceptance and 2% back on pay-in-full purchases are unique in this space. Klarna has a wider retailer integration for its checkout flow, but Zilch's Mastercard approach means you're never locked out of a store.

Is Zilch worth signing up to?

If you're disciplined with money: yes. The 2% cashback on pay-in-full purchases is genuinely useful and costs nothing. The instalment option is there when you need it, with no interest as long as you pay on time.

If you're not confident about managing deferred payments, a regular bank account like Monzo with built-in budgeting tools is a safer starting point than any BNPL app.

The £5 free sign-up credit makes it risk-free to try — you get the reward just for verifying your identity, no purchase required.

You might also like

• Zilch referral code: get £5 free credit when you sign up
• Yonder referral code: earn points with a Yonder credit card
• Monzo referral code: get up to £100 when you join

Useful links (official resources)

• Zilch homepage: https://www.payzilch.com/
• FCA Financial Services Register: https://register.fca.org.uk/s/
• Citizens Advice on buy now pay later: https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/using-buy-now-pay-later/

Get your £5 Zilch sign-up reward here.