UK-based lender Virgin Money is set to enter the buy now, pay later (BNPL) market later this year, with Virgin Money Slyce.
The new BNPL product, which has a waiting list, is fully regulated and has been created in partnership with Mastercard and global payments company TSYS.
Virgin Money has said it will conduct credit and affordability checks before customers start to spend using Slyce, which is being aimed at Gen Z – typically those born between 1997 and 2012.
They will also be able to use Slyce to build their credit score and can track their activity via the Virgin Money credit card app.
Slyce will consolidate customers’ BNPL spending into one place, with one monthly payment.
Any monthly spend over £30 can be spread across three, six, nine or 12-month repayment plans, with those who pay back in three or six months not charged a fee for doing so.
An instalment fee will apply to nine and 12-month repayment plans, charged as s 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.
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.”
At the Open Banking Expo BNPL Symposium in July, speakers discussed what regulation of the UK market might look like and why it is needed.