Virgin Money is entering the BNPL space announcing its new credit card, Virgin Money Slyce, aiming to allow customers to ‘buy now, pay better’.
Virgin Money users will be able to repay across monthly instalment plans with the firm stating that customers’ credit scores will be boosted. Affordability checks will be in place to ensure the user isn’t spending beyond their means.
Slyce enables customers to spend over £30 across three, six, nine or 12 month repayment periods, with repayments occurring inside the first three and six months come with no additional fees. A 7.5% and 10% instalment fee is added to nine and 12 month repayments respectively.
Virgin Money maintains that users of Slyce will be able to build their credit score by spending abroad with no foreign exchange fees or cashback. Slyce ensures customers of its fully regulated range of controls that look to protect customers with affordability and credit checks.
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.”
Virgin joins major players such as Apple and Mastercard with its new BNPL offering, rivalling pioneers of the market such as Klarna.
Increased competition within the sector is one of a handful of causes attributing towards the downturn of BNPL firms this year. Klarna has seen its valuation drop from $46bn last year to $6.7bn today, as investors have grown wary of increased credit checks and prices, along with other macroeconomic concerns.
Chater continued: “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.”