A brief market update this morning has seen the Sezzle Inc (ASX: SZL) share price shoot up more than 30%.

This comes after a considerable share price decline last week in response to news that the California Department of Business Oversight (DBO) had rejected Sezzle’s application for a California Financing Law license to make loans.

Sezzle is a buy now, pay later operator. The company offers consumers interest-free instalment plans for online stores. It had 7,500 active merchants at 30 September 2019 across the US and Canada.

What’s Happened?

Sezzle held its first call with representatives from the California DBO on Monday US time.

Based on those discussions, the company has advised it is confident of having a path to resolution in creating a successful application for the Californian lender license.

Last week, rival Afterpay Ltd (ASX: APT) announced that its subsidiary had applied for the same license in 2019 which was approved in November 2019.

What Now?

Although this is a promising update for Sezzle, there is still plenty of water to go under the bridge. The company will continue to update the market of any material developments.

The Sezzle share price was last trading nearly 32% higher at $1.79.

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