Installment payment solution company Sezzle has teamed up with Visa’s CyberSource payment management platform to offer consumers interest-free “buy now, pay later” (BNPL) options on purchases, according to a release.
The BNPL option is meant to help online businesses grow sales and put more items in baskets, without credit risks to the seller.
With Sezzle, consumers can divide their purchases into four installments, and pay interest-free for six weeks. The purchases won’t affect credit scores.
Sezzle’s main targeted demographic is younger consumers, and it wants to increase their purchasing power.
“Installment payment plans have taken off across the world as a popular way for consumers to get what they need while sticking to their budget, and now our merchant clients can easily offer installment solutions,” said Andre Machicao, SVP, global head of product, CyberSource, a Visa solution. “Visa is committed to enabling new forms of payment innovation across the e-commerce ecosystem. Sezzle's installment solution is rapidly growing among Gen Z and millennial consumers and is proven to dramatically reduce cart abandonment.”
Sezzle’s partnership with Visa follows its first earnings report as a publicly traded company on the Australian Securities Exchange. Sezzle’s first half of 2019 was profitable, and revenue growth showed the company was viable and successful in its space. The company has around 5,800 merchants, and those merchants experienced an estimated 15 percent growth from the end of June to the end of July.
“We are excited to be available on CyberSource's platform, making it easy for merchants to offer Sezzle to their shoppers,” Sezzle CEO and Co-Founder Charlie Youakim said. “We believe CyberSource's scale and reputation with e-commerce stores make them an ideal partner to further fuel our rapid growth. We look forward to working with them to provide online merchants — and their customers — with a payment experience that drives revenues and increases consumer loyalty.”