Virgin Money UK has officially entered the buy now, pay later (BNPL) market with its new consumer credit product “Slyce”.
The company originally launched the new service with a YouTube campaign and a prize draw awarding five winners Virgin Red points (which can be exchanged for flights) and £2,000 in spending money. Customers interested in joining are being added to a waiting list, the company said in a press statement.
The new credit product is targeting adults in Gen Z, born after 1997. The service has been designed as a partnership between Mastercard and payments company TSYS.
Virgin is offering customers the opportunity to watch changes in their credit score in the app, along with a broader suite of content including polls, videos and written content to educate customers on financial management and how to improve their credit score further.
Hugh Chater, chief commercial officer at Virgin Money, said consumers now expect to be able to pay using BNPL plans and the bank was keen to enter the market with a “regulated credit” offering.
“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.”
Any monthly spend over £30 can be spread across three, six, nine or 12-month repayment plans. Paying back in three or six months is fee-free. For longer plans of six and 12 months, an instalment fee is added.