Chalk up another Buy Now-Pay Later (BNPL) lender-merchant partnership. Sezzle picks up a big win by inking a deal to provide Target with the increasingly popular lending method among consumers. The two firms had completed a trial run of the platform and now have entered a long-term agreement.
Target has been among the best-performing retailers during the pandemic due to its ability to seamlessly manage both in-store and online channels. Now Sezzle will become its BNPL lender of choice, and give Target shoppers a wider range of payment options.
The following excerpt from a The Market Herald article reports more on the topic:
Fintech player Sezzle (SZL) has signed a three-year agreement with retail giant Target following the end of a proof-of-concept trial. Under the deal, Sezzle’s buy now pay later platform, which provides interest-free installment plans to customers, will now be made available in-store and across Target’s digital platforms.
Sezzle struck up the proof-of-concept trail back in September, which included limited testing with a few Target.com users to evaluate the efficacy of Sezzle’s offering.
Notably, the deal with the U.S.-based retail leader comes weeks after Sezzle unveiled plans to list in the U.S. Sezzle’s ASX-listed shares have more than tripled since IPO-ing around $2.40 per share back in mid-2019, and the company appears keen to try and recreate this success in the U.S.
Target, which trades under the ticker ‘TGT’ in the U.S. in an $112 billion cap, is the second NYSE big-hitter to strike a recent deal with Sezzle. Through an agreement with Ally Financial’s lending branch unveiled late last year, Sezzle will begin offering longer-term loans to accompany is traditionally short-term lending model.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group