Buy Now Pay Later (BNPL) is having a moment in fintech. And one of the leading players in the space is expanding its innovations into the offline realm.
Minnesota-based Sezzle unveiled its virtual payments card this week, helping users benefit from its BNPL technology during their in-store shopping trips. The company has partnered with card issuing platform Marqeta to power its new virtual card.
Sezzle virtual cardholders will be able to use Sezzle’s installment payments technology in-store at retailers that already accept Apple Pay and Google Pay, as well as online. The purchases are interest-free and can be split into four installments, paid out over six weeks.
“As traditional, in-store retail re-emerges, it’s critical that we support our merchant partners by giving them new tools to jump-start sales, both online and in-store,” said Sezzle Co-founder and Chief Technology Officer Killian Brackey. “As a proven solution for driving incremental sales and new customer growth, we are thrilled to publicly announce an easy way for U.S. retailers to offer Buy Now, Pay Later in store.”
The in-store user experience is simple. At checkout, consumers authenticate themselves and tap their phone at the point-of-sale terminal, which will activate their Sezzle card.
Sezzle’s news comes on the heels of PayPal’s announcement that it plans to add a BNPL competitor. The payments giant revealed on Monday the launch of Pay in 4, a short-term payments installment product for U.S. customers.
Four-year-old Sezzle, which listed on the Australian Stock Exchange (ASX) last summer, has seen a recent uptick in adoption, spurred by the economic effects of the coronavirus. The company added 325,000 new users in the second quarter of this year, up 326% from the same period last year. Sezzle has a market capitalization of $848 million.