The Sezzle Inc (ASX: SZL) share price is up 8% after making an announcement to investors.
Sezzle is a US-based and incorporated business that provides an interest-free instalment payment solution. It has been operating since 2017 and is now in 12 countries. Sezzle listed on the ASX with an initial public offering price of $1.22 per share/CDI. The business does not charge interest or initiation fees, however it does charge failed payment fees of US$10.
Sezzle’s Latest Update
Sezzle announced that its solution is now available to online businesses worldwide through Visa’s CyberSource payment management platform.
This development means that CyberSource merchants will be able to offer Sezzle’s zero interest buy now pay later service.
Sezzle thinks it’s onto a winner because its offering can help sellers increase their sales and grow basket sizes with no credit risk to the merchant.
How the system works for shoppers is similar to others like Afterpay Touch Group Ltd (ASX: APT), Sezzle’s solution will allow online shoppers to split purchases into four interest-free instalments over six weeks. Sezzle also says that using its service doesn’t have an impact on credit scores, it doesn’t incur interest on payments or risk going into debt.
As part of the update, Sezzle said that its active merchants and active customers grew by 15% over the month from 30 June 2019 to 31 July 2019. It had 5,793 merchants at the end of July 2019.
Sezzle CEO and Co-Founder Charlie Youakim said: “We are excited to be available on CyberSource’s platform, making it easy for merchants to offer Sezzle to their shoppers.
“We believe CyberSource’s scale and reputation with e-commerce stores make them an ideal partner to further fuel our rapid growth. We look forward to working with them to provide online merchants – and their customers – with a payment experience that drives revenues and increases customer loyalty.”
Anything Else?
Sezzle was also pleased to boast that it is the highest consumer rated alternative payment solution on the market according to Trustpilot, which is a third-party review site.
The buy now, pay later sector is going on a strong run. FlexiGroup Limited (ASX: FXL) was another to reveal strong growth today. Can they all grow and all make good profit? I don’t know the answer, which is why I’m sticking to other growth shares such as the ones in the free report below.
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