From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Type of businessPublic
Type of site
Financial technology
Traded asASXSZL[1] [2]
Founded2016; 5 years ago (2016)
IndustryFinancial technology
UsersIncrease 2.6 million (March 2021)
Current statusActive
Native client(s) on

Sezzle is a publicly traded financial technology company headquartered in Minneapolis, U.S operating in the United States and Canada.[3] The company provides an alternative payment platform offering interest-free installment plans at selected online stores.[3][4][5] As of March 2021, the Sezzle platform had over 6.7 million user sign-ups and over 34,000 participating merchants.[6][7][8]


Sezzle was founded in 2016, by Charlie Youakim (currently CEO), who had previously led Charlotte-based Passport Parking, Paul Paradis (President), and Killian Brackey (CTO) in Minneapolis, U.S.[9] Sezzle raised over US$17 million in equity capital prior to its IPO, where it raised an additional US$30 million. The company also has a US$100 million debt facility from Bastion capital.[10][11][12]

Sezzle’s initial product was next-business-day ACH payments, and a cash-back reward system. Sezzle later iterated to a “buy now, pay later” model in 2017 after witnessing success in the growing industry. Sezzle launched its product to the United States in August 2017. It raised US$9.1 million in mid-2018 and gained a US$100 million debt financing from Bastion Capital Corporation by the end of the year. At that time, it hired former US Bank executive Karen Hartje as its Chief Financial Officer and former Target and TD Bank executive Jamie Kirkpatrick as its Chief Risk Officer.[13]

In April 2019, Sezzle raised US$5.7 million, partnered with Bank of America Merchant Services to implement their digital card processing solution within the payment platform, and expanded to Canada a few months later, opening its headquarters in Toronto, Ontario. Sezzle listed on the Australian Securities Exchange at AU$1.22 a share on 30 July 2019 and raised US$30 million.[14] In December 2019, it gained a US $100 million line of credit.[15]

In February 2020, Sezzle announced that it topped 1 million active customers.[16]

On 1 June 2020, Sezzle reincorporated as a Public Benefit Corporation, making Sezzle the first “buy now, pay later” corporation with such a status.[17] Later that summer, the company raised US$55 million from its equity in the ASX, and hired former PayPal executive Veronica Katz as its Chief Revenue Officer, while Paradis became the company’s first President.

On 6 August 2020, Sezzle CEO Charlie Youakim said the company is testing its service offering in India, with an expected launch at the end of the year. The move would mark its first major expansion outside of the US and Canadian marketplaces.[18]


The Sezzle e-commerce payment platform, launched in 2017, enables customers of participating online stores to split the payment for their purchases into four installments. The first installment is paid at the moment of purchase while the other three are due at regular intervals over the following six weeks.[9][19]

Instead of relying solely on a customer’s FICO score for credit risk evaluation, Sezzle’s underwriting system assesses each order individually and takes into account multiple factors including a soft credit score check, the customer’s order history with Sezzle, and the total purchase amount.[9][20] The customer’s credit score is not impacted.[19] Sezzle’s service comes at no added cost to the consumer.[9][20] Repeat customers who have paid off previous purchases on time are allowed to finance the purchase of more expensive products.[4]

The platform operates as an alternative payment method that the customer selects at checkout to enable payment with participating retailers. Users can also shop and find stores through the Sezzle app and website.[21]

California lending license[edit]

On 30 December 2019 the company introduced a "buy now and pay later" service in California to its customers but the California Department of Business Oversight ruled that the company instead of offering an interest-free pay later service makes loans to its customer.[22] The California Department of Business Oversight stated that Sezzle's involvement with the merchants goes "beyond non-lending relationship yet permitted by California courts, and the credit sales purportedly purchased by Sezzle do not justify Sezzle’s extensive involvement".[23][24]

On January 17, 2020 the California Department of Business Oversight officially approved Sezzle's application for a lending license to operate within the state of California.[25][26][27]


  1. ^ "U.S. Payment Startup Sezzle CEO on Australia IPO, Strategy". Bloomberg. Bloomberg Daybreak: Australia. July 30, 2019. Retrieved 2019-07-30.
  2. ^ Richardson, Tom (July 30, 2019). "The Sezzle IPO is about to put a rocket up the ASX boards". Yahoo! Finance. Retrieved 2019-07-30.
  3. ^ a b "Sezzle overview". May 22, 2019. Retrieved July 30, 2019.
  4. ^ a b Ramstad, Evan (2018-11-18). "Sezzle develops pay-in-2019 option with online retailer Tobi". Associated Press. Retrieved 2019-07-30.
  5. ^ Mohs, Marielle (2019-06-27). "AngelTax Credit Returns To Minnesota In Hopes Of Making Minneapolis Competitive With Silicon Valley". CBS Local. Retrieved 2019-07-30.
  6. ^ GmbH, finanzen net. "Sezzle Surpasses One Million Active Customers | Markets Insider". Retrieved 2020-02-27.
  7. ^ Sezzle. "Sezzle Surpasses One Million Active Customers". Retrieved 2020-02-27.
  8. ^ PYMNTS (2020-02-10). "BNPL Startup Sezzle Tops 1M Active Customers". Retrieved 2020-02-27.
  9. ^ a b c d PYMNTS (2017-11-17). "How Sezzle Wants To Help Millennials Without Sizzling Credit". Retrieved 2019-07-30.
  10. ^ Grayson, Katharine (November 15, 2018). "Fintech startup Sezzle snags $100 million for pay-as-you-go offering". American City Business Journals. Retrieved 2019-07-30.
  11. ^ "Paytech Sezzle sizzles with $100m line of credit". FinTech Futures. November 20, 2018. Retrieved 2019-07-30.
  12. ^ Muhn, Julie (2019-07-31). "Sezzle Raises $30 Million in IPO". Finovate. Retrieved 2019-08-18.
  13. ^ "Millennial Payment Company Sezzle Hires Target and TD Bank Alum As Chief Risk Officer". PRWeb. Retrieved 2020-07-27.
  14. ^ "Australia laps up U.S. buy-now-pay-later lender Sezzle in IPO". Reuters. 2019-07-30. Retrieved 2020-07-27.
  15. ^ "Sezzle closes $100 million debt facility to finance online shopping over holiday season". Star Tribune. Retrieved 2020-07-27.
  16. ^ PYMNTS (2020-02-10). "BNPL Startup Sezzle Tops 1M Active Customers". Retrieved 2020-12-14.
  17. ^ PBC, Sezzle. "Buy Now, Pay Later Leader Sezzle is Now a Public Benefit Corporation". Retrieved 2020-07-27.
  18. ^ "Buy now, pay later platform Sezzle tests the waters in India". Platform Executive. 2020-08-06. Retrieved 2020-08-07.
  19. ^ a b Wierson, Arick (2019-06-24). "Payment Disruptor Sezzle Poised to Shake Up the US E-Commerce Market". Observer. Retrieved 2019-07-30.
  20. ^ a b "Sezzle FAQ". Sezzle. Retrieved July 30, 2019.
  21. ^ Ross, David (2019-04-17). "US buy-now-pay-later app Sezzle moves into Afterpay's territory in Australia – but says it's not here to fight". Business Insider Australia. Retrieved 2019-07-30.
  22. ^ Reuters (2020-01-02). "Australia-Listed Sezzle Fails to Win California Lending License, Shares Dive". The New York Times. ISSN 0362-4331. Retrieved 2020-01-05.
  23. ^ "Regulator blocks hot fintech startup from offering its service in California". Retrieved 2020-01-05.
  24. ^ "Sezzle shares plunge after California moves to regulate online installment payments". Star Tribune. Retrieved 2020-01-05.
  25. ^ "California grants loan license to pay-later outfit Sezzle". Reuters. 2020-01-17. Retrieved 2020-02-27.
  26. ^ PYMNTS (2020-01-17). "Sezzle Installment Payments Gets Lending License". Retrieved 2020-02-27.
  27. ^ Sezzle. "Approval of Sezzle's California Lending License". Retrieved 2020-02-27.