Zilla halts BNPL service to focus on cross-border payment
TLDR
- Nigerian fintech startup Zilla discontinues buy-now-pay-later (BNPL) service to focus on Zillawire, its cross-border payment solution.
- The company is addressing certain matters before potentially resuming the BNPL service.
- Zilla aims to explore and expand its presence in the evolving landscape of cross-border fintech.
Nigerian fintech startup Zilla is making strategic changes by discontinuing its buy-now-pay-later (BNPL) service to shift its focus towards Zillawire, its recently launched cross-border payment solution. TechCabal received confirmation from the company regarding this decision, with Zilla stating that it needed time to address certain matters before potentially resuming the BNPL service.
Although specific timelines for the service's resumption were not disclosed, the company emphasized that efforts are underway. Founded in 2021, Zilla has positioned itself as a platform with around 100 merchants offering diverse products and services. These offerings allow customers to make payments in two to four installments, providing flexibility in their financial transactions.
As the startup adapts its strategy, the move underscores Zilla's commitment to exploring and expanding its presence in the evolving landscape of fintech, particularly in the domain of cross-border payments.
Points clés à retenir
Despite facing slow adoption overall, there were two notable categories that exhibited relatively strong performance in the context of the Zilla platform – electronics and high-end beauty products. A source familiar with the business explained that these items, typically considered too expensive for the average consumer to afford in a single payment, garnered interest. However, even in these high-performing categories, a challenge emerged: customers expressed a desire for more flexibility than the maximum four-month payment window offered by Zilla. This observation underscores the nuanced dynamics of consumer behavior within the credit-based business model employed by Zilla, particularly in the African market. While certain product categories found traction due to their costliness, the demand for extended payment periods signals a need for greater adaptability in catering to the financial preferences of the consumer base. These insights shed light on the intricacies and challenges associated with credit-based approaches in the African business landscape.
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