What Sezzle does

Sezzle Inc. (NASDAQ: SEZL) is a Minneapolis-based public fintech founded in 2016 that operates an open-loop Buy Now, Pay Later (BNPL) platform, with Pay-in-4 interest-free installments over six weeks as its anchor product and Pay-in-5 plus Pagaya-powered long-term installment financing as extended-duration offerings. Loans are originated through a chartered-bank partnership with WebBank (Member FDIC), and Sezzle distributes its payment option through a v2 REST API, JavaScript and native iOS/Android SDKs, plugins for Shopify, Magento 2, Wix, and WooCommerce, an in-store POS API, and a Sezzle Virtual Card tokenizable into Apple Pay and Google Pay; underwriting is driven by a proprietary engine that maintains credit losses around 2% of GMV using soft credit checks without hard pulls, supplemented by Pagaya's AI underwriting platform. The consumer-facing super app layers a Virtual Card, Sezzle Mobile unlimited 5G telecom (powered by Gigs on AT&T), Sezzle Up credit-bureau reporting, MoneyIQ financial literacy (powered by Zogo), the Earn cashback tab, Sezzle Points rewards, an AI support chatbot resolving approximately 70% of inquiries, and an AI shopping assistant. Sezzle serves 3.1 million active consumers and 40,000+ merchants spanning Amazon, Walmart, Target, Nike, Airbnb, Uber, Lyft, DoorDash, and David's Bridal, primarily in the United States and Canada after exiting India and certain European markets.

Sezzle generates revenue primarily through a merchant-funded model charging 3-7% per transaction, supplemented by consumer service fees ($0-$7.49), subscription revenue from 887,000 Monthly On-Demand & Subscribers, interest income on funded receivables, and partner referral commissions. The company reported FY2025 revenue of $450.3 million (+66.1% YoY) with $133.1 million in net income, 100%+ return on equity, and a 73% gross profit margin in Q1 2026, supported by a $300 million Mesirow receivables facility that lowered its cost of capital by approximately 290 basis points. Governance and oversight underwent disruption in April 2026 with the resignation of board member Karen Webster, the appointment of PricewaterhouseCoopers as auditor following a disclosed material weakness in internal controls over cash flow classification, and concurrent securities-fraud investigations announced by Pomerantz LLP and Lowey Dannenberg, P.C.

Name

Sezzle

Legal name

Sezzle Inc.

Website

https://sezzle.com

Company type

Public

Founded year

2016

Operating status

Operating

Headcount range

251–500 employees

Short description

Sezzle is a Minneapolis-based public BNPL fintech that provides interest-free Pay-in-4 and Pay-in-5 installment financing through 40,000+ merchants to 3.1 million active consumers in the US and Canada, while expanding into a super-app spanning virtual cards, mobile telecom, credit-building, and AI-driven shopping tools.

Ownership category

akta.pro rank

Product category

Buy Now Pay Later (BNPL)

NAICS

Sales Financing (52222), Credit Card Issuing (522210)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

BNPL Merchant Enablement (Plugins, Gateways, Reconciliation) (FSAGAIAF)

akta.pro secondary industry

BNPL Consumer Apps & Wallets (Discovery, Management) (FSAGAIAG)

Keywords

• Buy now pay later
• Installment payment solutions
• Consumer installment lending
• Merchant payment processing
• Point of sale financing

Headquarters

HQ city

Minneapolis

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Merchant Fees: Primary revenue source: merchant-funded model where Sezzle charges retailers 3-7% per transaction for facilitating Pay-in-4 and Pay-in-5 installment plans at checkout
2. Consumer Fees (Late Payment & Rescheduling): Consumer fees including late payment charges, rescheduling fees, and Service Fees ranging from $0 to $7.49 depending on purchase price and product, charged at loan origination (e.g., $7.49 fee on $300 Pay-in-4)
3. Subscription Revenue (Sezzle On-Demand & MODS): Subscription revenue from Sezzle On-Demand product with 887,000 Monthly On-Demand & Subscribers (MODS) as of March 31, 2026; subscription tiers drive higher LTV and recurring engagement
4. Interest Income from Receivables: Interest income generated on funded receivables and from the Sezzle interest account program (managed via interest transfer settlements visible in payout summaries)
5. Partner Referral Revenue: Commission-based referral revenue earned when partners refer merchants to Sezzle; visible in payout summaries as REFERRAL_REVENUE_TRANSFER events

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels10 records

Core offering

Sezzle operates a "super app" buy now, pay later (BNPL) platform anchored by interest-free Pay-in-4 installment loans originated through WebBank, with extended Pay-in-5 and long-term financing products, a tokenizable Sezzle Virtual Card (powered by Marqeta), a credit-building add-on (Sezzle Up), gamified financial literacy (MoneyIQ), and an embedded 5G mobile plan (Sezzle Mobile). The platform serves both consumers (via iOS/Android app) and merchants (via REST API, SDKs, plugins for Shopify/Magento/Wix/WooCommerce, and an in-store POS API), with proprietary and Pagaya-powered AI underwriting that maintains credit losses around 2% of GMV.

Product overview

Sezzle operates a unified "super app" platform built around its core Buy Now, Pay Later (BNPL) installment products, anchored by Sezzle Pay-in-4 (4 interest-free installments over 6 weeks) and extended by Sezzle Pay-in-5, Long-Term Financing (Pagaya-powered), and Sezzle On-Demand subscription access. Around that core, Sezzle layers a Sezzle Virtual Card (issued by WebBank via Marqeta, tokenizable into Apple Pay and Google Wallet), an unlimited 5G Sezzle Mobile phone plan (powered by Gigs), a Sezzle Up credit-reporting add-on, and a MoneyIQ gamified financial-literacy tool (powered by Zogo), plus the new Earn tab, Sezzle Points rewards, and Payment Streaks loyalty tiers. For merchants, Sezzle offers a developer platform (REST API, JavaScript/Android/iOS SDKs, webhooks, Express Checkout, In-Store POS API, On-Site Messaging Widgets) and direct integrations with e-commerce platforms (Shopify, Magento 2, Wix, WooCommerce), while underwriting is driven by Sezzle's proprietary scoring engine and Pagaya's AI underwriting, and an AI-powered support chatbot and shopping assistant automate consumer interactions inside the app.

Differentiator

Problem solved

Functional benefit

Brands

• Sezzle Mobile: Unlimited 5G mobile phone plan service launched in February 2026, powered by Gigs and operating on AT&T's network, priced at $29.99 per month.
• Sezzle Up
• MoneyIQ

Products and services

• Sezzle Pay-in-4 Splits a purchase into 4 interest-free installments paid biweekly over 6 weeks (e.g., 25% down then 3 biweekly payments). Originated by WebBank or Sezzle with service fees ranging from $0 to $7.49. Targeted at consumers seeking interest-free short-term installment financing at online and in-store merchants.
• Sezzle Pay-in-5 Extended installment option that lets shoppers split eligible purchases into 5 payments with longer duration than Pay-in-4. Added in the 2026 super-app expansion to drive higher basket sizes for merchants.
• Sezzle Virtual Card Virtual card issued by WebBank under a Visa U.S.A. Inc. license that lets shoppers pay with Sezzle at any online or in-store retailer that accepts Visa; tokenizable into Apple Pay and Google Wallet for in-store and online acceptance anywhere Visa is accepted.
• Sezzle Mobile Unlimited 5G mobile phone plan priced at $29.99/month, powered by Gigs and operating on AT&T's network infrastructure; positioned within the Sezzle super app as an everyday consumer service beyond BNPL.
• Sezzle Up Opt-in credit-reporting subscription product that reports Sezzle on-time installment payments to credit bureaus, helping credit-invisible or thin-file consumers build a credit history; introduced for Canadian shoppers.
• Sezzle On-Demand Subscription/On-Demand access product that provides Sezzle users with flexible spending power and recurring engagement; growth in MODS reached 887,000 as of March 31, 2026, driving higher LTV and recurring revenue.
• MoneyIQ Gamified financial-literacy tool built into the Sezzle app and powered by Zogo; rewards users for completing personal-finance lessons, with over 1M lessons completed across 200,000+ users in less than a year.
• Long-Term Financing (Pagaya-powered) Longer-term installment loan product issued by WebBank and underwritten by Pagaya's AI platform at Sezzle's point of sale; targeted at qualified borrowers who want monthly terms beyond Pay-in-4/Pay-in-5.
• Sezzle Developer Platform (REST API, SDKs, Webhooks) Public developer platform providing a v2 REST API for sessions, orders, settlements, virtual card sessions, and customer tokenization (subscriptions), plus JavaScript/Android/iOS SDKs, OpenAPI Specification, Postman collection, sandbox/production environments, and HMAC-SHA256 signed webhooks for merchant integrations.
• Sezzle Express Checkout Single-click checkout button on product/cart pages that prefills returning Sezzle shoppers' contact and shipping details, giving shoppers a streamlined path to pay with Sezzle directly using their saved information.
• Sezzle In-Store POS POS Checkout API enabling physical-store merchants to send a Sezzle checkout link to customers via SMS or email and receive real-time payment updates on their POS system for in-store BNPL acceptance.

Quantifiable outcome

• Typical Sezzle merchants see an 88% approval rate, 14% share of checkout, and 22% order value lift
• +7 more outcomes

Named customers26 records

Segments5 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration12 records

AI capability5 records

Feature10 records

Partnerships

13 partnerships are on record, tiered flagship and minor.

• Pagaya TechnologiesflagshipStrategic or Co-development Partner · 5 May 2026Pagaya Technologies partnered with Sezzle to embed its AI underwriting platform at Sezzle's point of sale, enabling eligible customers in select states to access longer-term installment loan products issued by WebBank. The collaboration increases merchant approval rates and basket sizes, with the two companies jointly pursuing enterprise-level merchants with a differentiated lending product.
• MarqetaflagshipTechnology or Integration · 14 April 2026Marqeta powers Sezzle Canada's Virtual Card via its card issuing platform, enabling real-time issuance into mobile wallets and contactless payments. Sezzle's launch in Canada was highlighted in Marqeta's Q1 2026 earnings as a customer momentum driver.
• Minnesota Timberwolves (NBA)flagshipGTM or Marketing Partner · 12 April 2026Sezzle is the official jersey patch partner of the Minnesota Timberwolves since August 12, 2024. The 2025-26 season partnership culminated in a VIP experience for Big Brothers Big Sisters Twin Cities at the April 12, 2026 regular-season finale, with nine local charities including Make-A-Wish, Boys and Girls Club, and Be the Change.
• PricewaterhouseCoopers (PwC)flagshipImplementation/ SI/ Consulting Partner · 9 April 2026Sezzle appointed PricewaterhouseCoopers LLP as its new auditor effective immediately, dismissing Baker Tilly US, LLP. The change follows a disclosed material weakness in controls over cash flow classification related to notes receivable for fiscal years 2024 and 2025.
• Gigs (with AT&T)flagshipTechnology or Integration · 18 February 2026Sezzle Mobile is powered by Gigs, an embedded connectivity platform, and operates on AT&T's network infrastructure. The unlimited 5G mobile plan is priced at $29.99 per month and is integrated into the Sezzle super app to extend the platform beyond core BNPL.
• David's BridalflagshipGTM or Marketing Partner · 17 February 2026Sezzle and David's Bridal co-sponsored the annual 'Love in Times Square' celebration on February 17, 2026, featuring live weddings and guest appearances by Hulu's 'Tell Me Lies' cast. David's Bridal integrated Sezzle's BNPL across its stores and online to help couples manage rising wedding costs; CEO Kelly Cook personally officiated one of the live weddings.
• Shopify (antitrust litigation)flagshipOthers · 9 June 2025Sezzle filed an antitrust lawsuit in June 2025 against Shopify alleging that the platform systematically damaged Sezzle's business by favoring Shop Pay Installments over Sezzle for a four-year period. In May 2026 the U.S. District Court for the District of Minnesota allowed core claims under the Sherman Act and Minnesota state law (monopolization, attempted monopolization, unlawful restraint of trade) to proceed, while dismissing without prejudice the unlawful tying claim. The case is ongoing.
• WebBankflagshipStrategic or Co-development PartnerWebBank originates all Pay Later loans for Sezzle (or Sezzle itself originates) and issues Sezzle Virtual Cards as Member FDIC pursuant to a license from Visa U.S.A Inc.; WebBank also issues installment loan products under the Pagaya partnership at Sezzle's point of sale.
• AdyenflagshipTechnology or IntegrationSezzle integrated Adyen for payment processing as part of its 1Q26 super-app platform expansion, supporting the new merchant partners RockAuto and Follett alongside expanded payments and telecom offerings.
• ZogoflagshipTechnology or IntegrationZogo powers Sezzle's MoneyIQ gamified financial literacy platform integrated into the Sezzle app. The partnership has driven over 1 million lessons completed in under a year with 200,000+ users, with 91% reporting the tool helpful in financial decisions.
• Shopify, Magento 2, Wix, WooCommerce (e-commerce platforms)flagshipTechnology or IntegrationSezzle offers pre-built plugins and integrations for Shopify, Magento 2, Wix, and WooCommerce via its Developer Documentation platform at docs.sezzle.com, enabling merchants to add Sezzle as a payment method at checkout with minimal development effort.
• American Express / Visa / Mastercard / Discover (card networks)flagshipTechnology or IntegrationSezzle's virtual cards are issued by WebBank pursuant to a license from Visa U.S.A Inc., supporting tokenization into Apple Pay and Google Pay wallets. Sezzle also accepts Visa, Mastercard, American Express, and Discover cards at checkout per its sandbox test data and PCI DSS Level 1 compliance posture.
• Lowey Dannenberg, P.C. / Pomerantz LLP / Miletus ResearchminorOthersSezzle is the subject of multiple federal securities law investigations by Lowey Dannenberg, P.C. and Pomerantz LLP following the April 9, 2026 resignation of board member Karen Webster, who cited growing differences with management over company direction and governance. Miletus Research initiated coverage with a Buy rating and $147 price target on Sezzle.

Scale indicators13 records

Recent moves7 records

Expansion highlights8 records

Direct peers

• Affirm: Largest U.S.-listed BNPL specialist offering Pay-in-4, longer-duration installment loans, and a card product. Directly competes with Sezzle at the same enterprise merchants (Amazon, Walmart, Target) and in app-based checkout, with a comparable merchant-funded plus consumer-fee revenue model.
• Klarna: Global BNPL leader offering Pay-in-4, Pay-in-30, and longer-term financing. Competes head-to-head with Sezzle in the U.S. and Canada at major retailers and via its own shopping app, with a similar merchant fee and consumer fee structure.
• Block (Afterpay / Cash App): Afterpay is one of Sezzle's closest direct BNPL competitors in Pay-in-4 at the same merchants, and Block bundles it with Cash App and Square payments. Closely comparable on product, target consumer (Gen Z/millennials), and merchant footprint.
• Zip: BNPL provider with Pay-in-4 and longer-term installment products in the U.S., Canada, and other markets. Competes directly with Sezzle at enterprise retailers like Target and shares a similar digital-first, app-led consumer proposition.

Broad incumbents

• PayPal (Pay in 4 / Pay Monthly): PayPal offers Pay in 4 and Pay Monthly installment products pre-integrated into its wallet and accepted at major retailers alongside Sezzle. As a payments incumbent, PayPal benefits from existing merchant relationships and a much larger consumer base, but is less specialized than Sezzle's pure BNPL offering.
• Apple (Apple Pay Later / Pay in 4): Apple Pay Later (now Pay in 4) is a wallet-level installment product that competes with Sezzle at point of sale and within mobile checkout, with structural advantages in distribution (iOS) and consumer data. Comparable as a broad payments incumbent entering the BNPL category.

Emerging players

• Splitit: Card-based installment platform that splits purchases on existing credit cards into monthly payments. Targets the same merchants and consumers as Sezzle but with a different (no-new-loan) underwriting model; relevant as a niche alternative in the BNPL space.

Others

• Visa: Network partner underpinning Sezzle's Virtual Card (issued by WebBank under a Visa U.S.A. license) and a key infrastructure enabler. Comparable as a payments ecosystem participant whose installment, tokenization, and acceptance rails directly shape Sezzle's economics.
• Marqeta: Card-issuing platform that powers Sezzle's Virtual Card issuance in real time into Apple Pay and Google Pay wallets. Marqeta is a strategic infrastructure partner (highlighted in its Q1 2026 earnings) rather than a competitor, but is comparable as a fintech enabler in the same payments value chain.
• WebBank: Industrial bank that originates all Sezzle Pay Later loans and issues the Sezzle Virtual Card pursuant to a Visa license. Comparable as a chartered bank enabling Sezzle's open-loop BNPL model, and a strategic counterparty whose program terms materially affect Sezzle's cost of capital and ability to scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat7 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/sezzleinc
• GitHubgithub.com/sezzle/sezzle-js
• YouTubeyoutube.com/@sezzle_official
• Facebookfacebook.com/sezzle
• LinkedInlinkedin.com/company/sezzle
• Instagraminstagram.com/sezzle
• TikToktiktok.com/@sezzle_official

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds9 records

Investors4 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sezzle