The Sezzle (ASX: SZL) share price is up after the buy now, pay later business announced a new partnership.
Sezzle’s new partnership
Sezzle announced its new partnership with Plaid this morning.
Plaid is a company that has a data network which powers the digital tools that millions of people use. According to Plaid, 25% of people with a US bank account have used Plaid to connect to more than 2,600 fintech developers across more than 11,000 financial institutions.
Sezzle said that joining Plaid’s data network gives consumer more security and control over how their financial data is used.
What does this mean for Sezzle?
Sezzle consumers will be able to connect their financial account to Sezzle in order to more easily pay using their bank account. The Plaid network will help Sezzle lower its processing costs by facilitating consumer payments through the ‘Automated Clearing House’ system instead of card networks.
Sezzle CEO and Executive Chairman said: “Plaid’s goal of making money more accessible for everyone aligns with our mission of financially empowering the next generation. We are excited to be working with Plaid on the next evolution of Sezzle product offerings, such as Sezzle Up, for our consumers and merchants.”
I like that Sezzle is working on improving its experience for consumers. It’s a competitive space with several players like Zip (ASX: Z1P), Afterpay (ASX: APT) and Splitit (ASX: SPT), so it needs to try to offer the best service.
I’m not sure I could ever buy shares in the BNPL space, but Sezzle seems very promising. I just don’t know if it’s going to be successful and profitable over the long term. These growth shares may be better industries to look at.