Sezzle now offers consumers the option to split purchases into two payments.
The installment payment platform’s new Pay-in-2 buy now, pay later (BNPL) product lets shoppers pay 50% at the time of purchase and the remaining 50% two weeks later, Sezzle said in a Tuesday (May 16) press release.
“Many consumers get paid every two weeks and we believe giving shoppers this option will allow them to better manage their budgets,” Sezzle CEO and Co-Founder Charlie Youakim said in the release. “Concurrently, for merchants, offering Pay-in-2 should lead to higher approval rates and increased shopper conversions.”
Sezzle’s Pay-in-2 option joins the company’s existing products that let consumers pay in four installments over six weeks or pay monthly installments for up to 48 months, according to the press release.
If consumers opt-in to the company’s credit-builder feature, Sezzle Up, they can also build their credit score when they used Pay-in-2, the release said.
Merchants that offer Sezzle don’t have to take any action to add Pay-in-2, as the new option will be enabled through their existing integration, per the release.
“The Pay-in-2 product will allow Sezzle’s offerings to expand to new categories, including grocery, monthly subscriptions and other higher frequency categories where splitting into two payments is more sensible than splitting into four payments over six weeks,” Sezzle said in the release.
The news of this product comes one day after Sezzle announced earnings that showed its monthly revenue increasing 25% year over year.
“We continue to see revenue growth while improving our unit economics and cost efficiencies,” Youakim said in a Monday (May 15) earnings release. “We also expect to layer on a number of revenue-driving initiatives before the end of the third quarter, adding to the improvements we began in 2022.”
Consumers tapping into BNPL find value in being offered installment options at the moment they are trying to make purchases in an environment where inflation has been ever-present and paycheck-to-paycheck pressures are predominant, Youakim told PYMNTS’ Karen Webster in an interview posted Friday (May 12).
“One of the sayings that our CFO has is that our customer is always in a recession,” Youakim said. “We’re trying our best to help that customer build up their credit score and get onto the next stage of their financial lives.”