The Sezzle Inc (ASX: SZL) share price is sizzling this morning as it shot up by as much as 5%. So, what’s contributing to the jump in the Sezzle share price?
SZL share price
Sezzle expands its product offering
In an attempt to take market share away from fellow buy-now-pay-later (BNPL) players like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), it has launched a new product offering.
Sezzle announced the launch of its long-term financing options with Ally Lending. This is the personal lending arm of Ally Bank, a subsidiary of Ally Financial (NYSE: ALLY).
The product offering is catered to higher ticket transactions where customers can pay via monthly fixed-rate instalments that can be extended by up to 60 months.
Customers can use this for purchases valued up to US$40,000 through a fully digital application process subject to credit review and approval.
Sezzle notes this offering was in response to growing demand from merchants for solutions catering for higher-priced items.
My take
As my colleague, Patrick Melville outlined in his article on Zip Co, it’s quite difficult to build a sustainable competitive advantage in the BNPL space.
Whilst it’s great to see Sezzle providing what its merchants want but at the same time, what’s preventing its competitors from doing the same thing?
Another important factor to consider is whether Sezzle has strong optionality.
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