Card-issuing giant Discover has signed an agreement to help expand instalment payment platform Sezzle’s buy-now-pay-later feature.
The agreement will enable Sezzle to work with merchants on the Discover Global Network to offer additional payment options.
Sezzle, which was founded in 2016, offers interest-free loans to customers for their purchases at online stores and select in-store locations. The loan approval is instant and individual credit scores are not affected unless the consumers opt for a credit building feature.
Jason Hanson, SVP of global business development and acceptance at Discover, said: “Our merchant partners are always a top priority and we know that providing them with additional payment options, such as a buy now, pay later structure, can be beneficial, especially in the current economic environment.
“We are able to leverage our unique technology capabilities and vast network of merchant relationships to provide Sezzle the ability to grow its business and provide new payment opportunities.”
This comes as Covid-19 has accelerated electronic payments across the globe, and according to Sezzle, it has added over 300,000 new customers since the start of the pandemic.
Interest-free BNPL payments
Through Sezzle, Discover merchants will be able to offer interest-free BNPL payments without having to upgrade their existing payment systems.
Paul Paradis, president of Sezzle, said: “Our partnership with Discover will help to further accelerate our business development efforts by connecting our team with Discover and its established relationships.”
The latest announcement follows a year of expansion from Sezzle. In September 2020, American retail giant Target tapped the BNPL firm to trial its services within Target stores as well as online.
In addition, the US fintech unveiled plans in August to expand to India by the end of 2020. Speaking at the time, Charlie Youakim, Sezzle CEO, said: “Assuming expectations are met, we launch UPI sometime this month and then we’ll have some sort of sense come end of October and then we can turn on ahead of the holiday season.”