Sezzle

Sezzle is a BNPL platform offering consumers the ability to convert their purchases into four interest-free payments over six weeks. Shopping through the Sezzle app, users can convert transactions at checkout. The company provides a Sezzle virtual card (launched in September 2020) for purchases online or in-store, restricted to merchants already integrated with the platform. It also offers Sezzle Pay Anywhere , a subscription-based service that allows users to use Sezzle's virtual card online, in-store, or at any Visa-accepted merchant with Apple Pay or Google Pay. Sezzle Pay Anywhere allows users to earn 1% cash back through Sezzle Spend on eligible pay-in-full transactions and provides users with an option to build credit through Sezzle Up.

In addition to interest-free products, Sezzle has partnered with Ally Bank to offer long-term financing for larger purchases at competitive interest rates. Regarding long-term financing with its interest-free products, users undergo a hard credit check as opposed to a soft credit check. With its Sezzle Up product, the platform provides interested users the option to have their payment history reported to the credit bureau in an attempt to boost their credit score.  The service was launched in the US and expanded to Canada in January 2023. The company operated in the US and Canada and had plans to expand to Europe, while experimental operations in India (beginning in July 2020) were shut down in April 2022.

Sezzle generates revenue through 1) merchant fees - 6.0% in FY2020 structured as a percentage of the order value plus a fixed transaction fee, 2) reschedule fees - USD 5 paid by the customer if they want to alter the repayment schedule for a second time, and 3) account reactivation fees - charged to reinstate customers locked out as a result of failed payments.

In February 2022 , Sezzle reached a definitive agreement to be acquired by Zip Co. for USD 352 million, which was later terminated in July 2022 . In October 2022, Sezzle announced that it will complete a USD 60 million improvement program in Q1 2023 targeting profitability. This includes product development initiatives on two new offerings; a Pay-in-2 feature and a pay-anywhere card.

Key customers and partnerships

Sezzle signed a partnership with US retail giant Target in June 2021 to expand its reach in the US market. In October 2021, Sezzle announced that it partnered with loyalty and payment solutions provider Alliance Data Systems (ADS) to integrate with ADS-owned Bread’s BNPL infrastructure solution. As part of the partnership, Sezzle planned to leverage Bread’s underwriting technology and financing solutions to penetrate big-ticket shoppers beginning in early 2022. In line with this Sezzle also announced partnerships with financial solution providers Genesis Credit and Oportun to expand its long-term financing options. In April 2023, the company partnered with Celerant Technology, a point-of-sales (POS) solution provider for retailers. Through this partnership, Sezzle planned to expand its product’s reach across retailers and eCommerce stores by integrating its BNPL offering with Celerant’s POS solution and provide it as a bundled offering to retailers and merchants.  In September 2023, the company partnered with WooCommerce , an open-source ecommerce platform, to increase its product reach by integrating its BNPL solution with WooCommerce merchants' checkout processes and allow online shoppers to opt for flexible payment options.

Funding and financials

In May 2024 , Sezzle secured USD 150 million via a senior debt facility with an accordion of up to USD 225 million to refinance the previous USD 100 million debt facility taken in October 2022 with Bastion and affiliates. The company earmarked the funds to support growth initiatives across the US and Canadian markets and expand offerings.

In July 2019, Sezzle was listed on the Australian Securities Exchange, raising USD 30 million in the process. The company listed on the ASX due to the country's higher uptake of installment financing payments and the greater level of investor understanding of the product. In March 2023 , Sezzle announced its intention to list on the US NASDAQ exchange.

Sezzle reported a 4.6% YoY increase in underlying merchant sales to USD 1.8 billion and a 26.9% YoY growth in total income to USD 159.4 million for FY2023. The company generated net income of USD 7.1 million for FY2023, compared to a net loss of USD 38.1 million recorded in FY2022. For FY2024, Sezzle expects to generate net income of USD 20 million (implying a YoY growth of 181.7%) and achieve a 20% YoY growth in total income.