Virgin Money is entering the buy now, pay later arena through the launch of a credit card that lets customers spread repayments over installments while building their credit scores.

Virgin is the newest bank to enter the BNPL market, which is rapidly expanding yet divisive due to rising interest rates and the broader economic crisis.

Prior to the debut of the product, known as Virgin Money Slyce, a waitlist has been established.

Customers can use Slyce and make a single monthly payment for all of their BNPL expenses. Spending in excess of £30 per month can be stretched out across three, six, nine, or twelve-month repayment plans. When paying back within three or six months, there are no fees; however, for longer plans, users are charged a portion of the total amount contributed.

Customers who use Slyce can also improve their credit scores, spend money overseas in any currency without paying additional fees or foreign exchange commissions, and get rewards at stores like H&M, Sweaty Betty, and Space NK.

The Virgin Money Credit Card app, which provides reminders and alerts to keep payments on track and a clear view to show exactly what is going out each month, is used to manage Slyce activities.

“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.”

“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.”

                                                      Hugh Chater, chief commercial officer, Virgin Money.