UK’s Virgin Money is set to foray into the evolving buy now, pay later (BNPL) space with the launch of a digital wallet in tie-up with Global Payments.

In addition to BNPL functionality, the wallet will feature the firm’s suite of customer products and services across payments, loyalty, and unsecured credit segments.

It will also integrate the firm’s rewards club, dubbed Virgin Red, to allow customers to both earn and spend Virgin Points.

The wallet, which will utilise open banking application programming interfaces (APIs), will also connect to Virgin Money’s Business Bank.

Virgin Money CEO David Duffy said: “Our branded digital wallet will truly bring to life the benefits of Virgin Money’s unique customer offer. By fully integrating the Virgin Red rewards club alongside our broader suite of products and services, we can create compelling value for both customers and the bank.”

Part of Virgin Money’s ‘accelerated Digital First strategy’, the wallet is expected to be rolled out to customers and businesses in the UK in the second half of next year.

The initiative targets cost savings of £175m over the next three years with plans to reinvest 50% of this in the business.

Global Payments CEO Jeff Sloan said: “We have a unique advantage of combining both sides of the payments ecosystem, coupling our merchant and issuing capabilities to deliver the next generation of digital commerce to our clients.

“Together with Virgin Money, we are building best-in-class digital solutions to provide exceptional, frictionless experiences for Virgin Money customers and merchants.”

Recently, Virgin Money announced plans to close 31 branches across Scotland and north of England.  The closures, which will take place early next year, will result in around 112 layoffs.