The new product will be offered alongside Zilch's 5% interest-bearing "Pay Now" debit option for everyday purchases, as well as the shorter-tenor "Pay over 6 Weeks."

Zilch customers who choose to "Pay over 3 months" will pay 25% of the total purchase price at the time of purchase and the remainder amount over three installments, exactly as they presently do when repaying credit with no interest over a period of six weeks.

About 100,000 Zilch customers have already had access to the new product as part of a trial.

According to the company, consumers' three-month loans would be limited by dynamic and personalized affordability thresholds.

"Over the last three years, Zilch has successfully delivered over 50 million customer transactions and £2 billion in customer spending, yielding us extensive behavioral datasets," says Philip Belamant, CEO and co-founder of the company. This is due to the fact that users of Zilch today control their daily credit and debit spending an average of more than 100 times a year."

According to him, Zilch has partnerships with a wide variety of UK retailers, such as Lego, Nike, and Morrisons, enabling clients to pay over three months, either in-person or through the app. Alternatively, buyers can use the goods at any of the 38 million retailers globally that accept Mastercard by paying an extra cost.

Belamant states: "This new payment option is intended for major purchases or urgent situations, including buying electronics, replacing car tires, or fixing house problems like a broken boiler. Customers may shop with confidence knowing that every payment above £100 is protected by section 75 of the Consumer Credit Act because Zilch is governed by the FCA.