Days after Bloomberg News reported that Apple will add Buy Now Pay Later (BNPL) functionality to Apple Pay, we learn that Buy Now Pay Later “OG” Sezzle has received an investment of $30 million from Discover. And not only will Discover make a financial commitment to the company, which most recently demonstrated its technology on the Finovate stage at FinovateFall in 2018, Discover also entered into an agreement that will enable the card company launch a Buy Now Pay Later service on its own Discover Global Network.
“We are excited about our relationship with Discover, as we believe our mission, vision, and values align,” Sezzle CEO and Executive Chairman Charlie Youakim said. “Discover’s capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers.”
Today’s announcement is also the fruit of an agreement inked back in February that enabled Sezzle to work with selected merchants on the Discover Global Network. Discover SVP of Global Business Development and Acceptance Jason Hanson underscored the benefit that BNPL provides to its merchant partners, and also noted that the partnership would boost Sezzle’s ability to “grow its business and provide new payment opportunities.” To this end, as part of the collaboration, Sezzle also will join a dedicated referral program that will introduce Discover’s credit and debit card products to its customers.
Founded in 2016 and headquartered in Minneapolis, Minnesota, Sezzle enables consumers to make purchases at more than 34,000 participating retailers, and pay for those purchases in four, interest-free installments over six weeks. Approval decisions are available instantly, and using Sezzle has no impact on the consumer’s credit.
The explosion in interest in Buy Now Pay Later payment schemes has been a boon for companies like Sezzle that were helping consumers shop today and pay tomorrow before it was cool. Last month, Sezzle announced partnerships with Target and Barstool Sports, and the company continues to affirm its plans for an initial public offering in the U.S. – having launched publicly on the Australian Stock Exchange (ASX) in 2019.
Sezzle began the year signing a $250 million receivable funding facility with Goldman Sachs and Bastion Funding to help fuel the company’s growth in the U.S. and Canada.