Sezzle, Bread Partner on Loan Program

The payments company Alliance Data Systems has formed a partnership with the buy now, pay later (BNPL) platform Sezzle, with Alliance offering its installment loan business Bread through Sezzle’s merchant network.

“Through the integrated partnership, Sezzle will leverage Bread’s deep underwriting and installment loan product to reach more customers buying big-ticket items, while offering a comprehensive product suite to its merchant partners,” the companies said in a news release on Monday (Oct. 25).

Bread, which was acquired by Alliance in December of last year, will operate alongside Sezzle to offer Sezzle’s more than 40,000 merchants — including Target and Bass Pro Shops — more options at checkout, the release said. It should be available to merchants in early 2022.

“Sezzle is B Corp certified and is on a mission to financially empower shoppers by creating best-in-class and transparent experiences,” said Sezzle CEO Charlie Youakim. “This also includes a focus on credit building and financial education, as well as sustainability, social good and ethical partnerships that are increasingly important to next-gen consumers. By providing Bread’s installment solution to customers, we can build on our buy now, pay later success, and expand our product suite to include additional installment lending options that give aspirational and big-ticket shoppers more ways to pay.”

According to the companies, Bread’s installment loans of three to 48 months will complement Sezzle’s BNPL options, while also giving both businesses a chance to grow. The partnership will see Bread originating loans through its affiliate, Comenity Capital Bank.

“This agreement allows for Bread and Sezzle to expand their reach and unlock mutual growth, while also giving more merchants the tools for success by appealing to a variety of customers and basket sizes,” said Val Greer, EVP and chief commercial officer of Alliance Data.

Read more: Sezzle, TransUnion Focus on User Repayment History

This partnership comes less than two weeks after Sezzle announced it was expanding on another partnership with the credit bureau TransUnion, to allow customers to establish and build credit based on their repayment history with Sezzle.

Sezzle users who qualify for Sezzle Up will have their repayment information submitted to TransUnion, giving them a leg up on better financial status.