Virgin Money has announced the launch of its new Buy Now Pay Later (BNPL) product, set to enter the market later this year. Virgin Money Slyce is the latest entrant to the BNPL market, however, it is the first of its kind to offer credit-building features within the product.
What is Buy Now Pay Later?
Buy Now Pay Later allows customers to spread the cost of payments, either fee-free or with a small fee over a set period of months. Buy Now Pay Later has received a fair amount of negative press in recent months, with some critics particularly vocal about the negative impact of using Buy Now Pay Later as a way of paying bills. BNPL also came under scrutiny due to its lack of regulation and questions were raised about consumers' understanding of the product. We explain more about BNPL services in our article, 'Everything you need to know about Buy Now, Pay Later'. Andy and Damien also discuss the pros and cons of BNPL in the following podcast episode.
What is Virgin Money Slyce?
Virgin Money Slyce is a credit card product offered by Virgin Money that lets you spread the cost of payments over 3, 6, 9 or 12 months. With Virgin Money Slyce you get a card that you can use to spend online or in-store and you can also spend abroad fee-free. The exact launch date of Virgin Money Slyce has yet to be announced, however, you can join the waiting list here. Users that sign up to the waiting list have a chance of winning £2,000 cash or 150,000 Virgin points which can be redeemed with Virgin Atlantic.
Virgin Money Slyce key features
- Spread payments over 3, 6, 9 or 12 months (a fee applies for payment plans over 9 months or more)
- Manage the payments via the Virgin Money credit card app
- Spend abroad fee-free
- Help to build your credit score with access to guides in-app
- Earn cashback on your spending with select retailers
- Fully regulated BNPL service
- Subject to credit and affordability checks
How does Virgin Money Slyce work?
Virgin Money Slyce is a credit card product that can be used to spend online or in stores across the UK and abroad fee-free. Virgin Money Slyce customers can spend on their card multiple times and then consolidate this spending into one monthly payment. Users can then choose to 'Slyce' payments over the value of £30 and pay the amount back in either 3, 6, 9 or 12 monthly instalments.
Payment periods of 3 or 6 months can be re-paid interest-free. Users that choose to pay back over 9 or 12 months, will incur a fee. The fee incurred is a percentage of the total amount on the payback plan, with 9 months totalling 7.5% and 12 months totalling 10%.
Virgin Money Slyce can be easily managed via the Virgin Money credit card app where you can also make payments in full with no fee. Virgin Money Slyce carries out credit and affordability checks on customers to ensure that the product is right for them and the service is fully regulated. Virgin Money Slyce also allows users to build their credit score with reminders and alerts to help consumers keep their payments on track. There are also handy guides within the app that can help you to understand how to boost your credit score.
Virgin Money Slyce fees
|3-month payment plan||No fee|
|6-month payment plan||No fee|
|9-month payment plan||7.5% of the total amount in the payment plan|
|12-month payment plan||10% of the total amount in the payment plan|
|Payment in full||No fee|
|Spending abroad||No fee|
|Late fees for missing a payment||No fee|
Who can access Virgin Money Slyce?
Virgin Money Slyce is available to those in the UK aged 18 and over. Applications are subject to credit and affordability checks.
What are the alternatives to Virgin Money Slyce?
Virgin Money Slyce is the latest entrant to the BNPL market, but there are others that are already available, some of which we list below:
- NatWest Buy Now Pay Later - NatWest's BNPL service allows you to spread your payments over 4 monthly instalments with 0% interest.
- Klarna - Klarna has two ways that you can choose to BNPL - pay in full 30 days after receiving the product or over 3 instalments. Find out more in our Klarna review.
- Paypal Credit - Pay any amount over £99 in 4 interest-free instalments with Paypal Credit.
- Monzo Flex - spread the cost of purchases up to £5,000 over 3, 6 or 12 months. Find out more in our Monzo Flex review.