Sezzle is a new digital payment platform that is giving consumers the purchasing power afforded by traditional credit cards but in an interest-free and credit check-free manner. To date, nothing like it has been released in the US, and it’s quickly gaining traction.
Here’s how it works: once a user signs up and attaches their bank account to the Sezzle platform, they can go to any merchant that has an agreement with Sezzle and make purchases by using Sezzle as the payment method. Sezzle will collect 25% of the purchase total at the time of the sale, and will automatically deduct from consumers’ bank accounts 25% of the purchase total every two weeks over a total of six weeks.
Since there is no credit check required, this model has been particularly popular among young people who, despite having a steady income, have little to no credit and therefore find it difficult or even impossible to obtain credit through traditional means. Merchants are benefitting too: customers purchase an average of 55% more goods when paying with Sezzle, which has increased merchant sales by about 8%. Tune in to learn more.