Challenger bank Virgin Money has launched a buy now, pay later product targeted at the young ‘Gen Z' market.
The Newcastle-based bank says it will enter the buy now, pay later market later this year with its Virgin Money Slyce, which will allow customers to set monthly payments for all of their spending. The firm said Slyce has been designed and aimed at the Gen Z audience – defined as being born between 1997 and 2012– and aims to educate them on credit, with information on customers’ credit scores, as well as tips on how to boost it further in the app, together with information to help educate people about finances, including video and polls.
It said any spend over £30 can be spread across three, six, nine or 12 months with “repayment plans to suit individual budgets” and that paying back in three or six months is fee-free. Instalment fees are added for longer plans of nine or 12 months, calculated as a percentage of the total amount a customer puts into the plan – nine monthly payments have a 7.5% fee added, and 12 monthly payments have a 10% payment fee added.
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Those joining the waiting list for the product, which is available for people above 18, are being entered into a prize draw which customers the chance to win one of five lots of 150,000 Virgin Points with rewards club Virgin Red, which it said is enough for a trip to Miami, plus £2,000 spending money.
Virgin Money said customers can build their credit score while using Slyce, can spend abroad in any currency with no foreign exchange fees or extra charges and can earn cashback when shopping at retailers including H&M, Boohoo, Urban Outfitters, Mac, Aveda, Huel, Sweaty Betty, Space NK and more. The bank has also teamed up with travel organisations and food retailers, allowing cashback to be earned through the likes of LNER, National Express, Apex Hotels, Caffe Nero, Costa Coffee and Morrisons.
It said customers will be able to view and manage their Slyce activity through the Virgin Money Credit Card app, which will have features such as reminders and alerts to keep payments on track, and a view to show exactly what is going out each month.
Virgin Money said Slyce is fully regulated and will have a range of controls, protections and safeguards in place. It will also carry out credit and affordability checks before any spending starts, to ensure the product – created in partnership with Mastercard and TSYS, a Global Payments company– is right for the customer.
Hugh Chater, chief commercial officer at Virgin Money, said: “It’s clear that consumers now expect to be able to pay via buy now pay later plans, so we’re very excited to offer an option that will bring more customers into a regulated credit environment at the same time as offering market-leading terms, flexibility and simplicity. Importantly, Slyce will help our customers stay in control of their spending while also building their credit score for the future - allowing our customers to buy now, pay better on terms that work for them.”
