Sezzle, a US-based firm that offers buy-now-pay-later (BNPL) services, has received $30m investment from Discover on a per-share price of $6.58 for nearly 4.6 million total shares issued.
The deal is part of an agreement with DFS Services, a subsidiary of the card-issuing giant.
As part of the investment, the companies also plan to enter into an expanded partnership with plans for a BNPL network solution on the Discover Global Network as well as a dedicated referral programme introducing Discover credit and debit offerings to Sezzle’s customers.
In February this year, Discover signed an agreement to help expand instalment payment platform Sezzle’s BNPL feature.
This agreement was aimed at enabling Sezzle to work with merchants on Discover’s network to offer additional payment options.
Commenting on the latest development, Sezzle executive chairman and CEO Charlie Youakim said: “We are excited about our relationship with Discover, as we believe our mission, vision, and values align.
“Discover’s capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers.”
Sezzle said that its shares will be issued utilising the company’s current placement capacity under Listing Rule 7.1, early in the week commencing 19 July 2021.
Founded in 2016, Minneapolis-headquartered Sezzle offers interest-free instalment payments to its users.
The firm is said to work with more than 34,000 merchants, serving over 2.6 million active consumers.
In September last year, Sezzle begun the limited tests of its BNPL services with retailer Target.
Last August, the firm revealed plans to foray into the Indian market.