"Our collaboration with Ally Lending enhances our customer financing offerings, making it possible for consumers to better manage their finances," said Charlie Youakim, executive chairman and CEO of Sezzle, in a press release. "Ally's dedication to its customers and commitment to innovation aligns with our own vision and culture.”
The new partnership “will give Sezzle merchants and shoppers access to long-term financing options, complementing Sezzle's existing short-term, interest-free offering,” the release said.
Sezzle is taking part in the growing buy now, pay later (BNPL) market. The company allows shoppers to make interest-free payments in four equal amounts over six weeks.
Sezzle said it has more than one million active customers and 10,000 merchants in partnership with its services.
BNPL providers are seeing market growth, as the payment financing option is seen as a possible boost for shopping via smartphone, which has been a challenge for retailers.
"We empathize with the economic situation millions of Americans now face," said Hans Zandhuis, president of Ally Lending. "We're proud to partner with Sezzle to offer budget-friendly, responsible financing options, so consumers can feel more secure when making the purchases they need."
Ally Lending offers “monthly fixed-rate installment loan products” that run for up to five years and “$$40,000 per installment plan.” The company, an arm of Ally Financial, has a “fully digital application process,” the release said.
The release was approved by Youakim on behalf of the board.
Founded in 2016, Sezzle offers a BNPL payments platform that has attracted the attention of investors. In July, the company announced that it had raised an additional $55 million.
“Sezzle is now in an even stronger position for all of its investors and very well-placed to accelerate its growth strategy and undertake investment in initiatives to drive long-term value creation," Youakim said at the time.