Sezzle Inc. (NASDAQ: SEZL)

Sezzle Inc. is a purpose-driven payments company operating a digital shopping and payments platform that provides consumers a flexible alternative to traditional credit. The company offers buy now, pay later products and related financial services designed to empower younger generations with greater financial control and access to responsible credit. Sezzle Inc. operates primarily in the United States and Canada, focusing on omnichannel commerce solutions for both online and in-person transactions.

Sezzle Inc. generates revenue through merchant processing fees, subscription revenue from consumer services, and consumer fees such as late payment and failed payment charges. Merchant processing fees are based on a percentage of gross merchandise volume plus a fixed fee per transaction. Subscription revenue comes from Sezzle Premium and Sezzle Anywhere, paid services offering enhanced merchant access and virtual card usability. Consumer fees include charges for rescheduling, failed payments, and late saver fees when debit or credit cards are used for installments.

The company operates through the following segments: Sezzle Platform, Sezzle Premium, Sezzle Anywhere, Sezzle On-Demand, Sezzle Balance, Sezzle Up, and Long-Term Lending.

• Sezzle Platform: This segment provides the core payments solution that instantly extends credit at the point-of-sale, allowing consumers to purchase and receive merchandise while paying in installments over time. It includes the flagship pay-in-four product, as well as pay-in-full, pay-in-two, and pay-in-five options. The Sezzle Platform is accessible via the Sezzle mobile application, online dashboard, or through integration with merchant websites using pre-built widgets or direct API.

• Sezzle Premium: This segment is a paid subscription service launched in 2022 that allows consumers to access large, non-integrated premium merchants for a recurring fee. Subscribers gain access to exclusive deals and discounts, the ability to earn Sezzle Spend back on purchases, and one additional free reschedule per order. Sezzle Premium enhances consumer value by enabling use of the Sezzle Platform at select premium merchants not directly integrated with the service.

• Sezzle Anywhere: Launched in 2023, this segment is a paid subscription service that allows consumers to use their Sezzle Virtual Card at any merchant online or in-store, subject to certain restrictions, for a recurring fee. It includes all benefits of Sezzle Plus and provides cash back in Sezzle Spend on pay-in-full transactions. Sezzle Anywhere expands omnichannel usability by enabling the Sezzle Virtual Card to function broadly across merchants.

• Sezzle On-Demand: Introduced in 2024, this segment allows consumers not subscribed to Sezzle Anywhere to use the Sezzle Platform at any merchant online or in-store, subject to certain merchant, product, goods, and service restrictions. Consumers using Sezzle On-Demand pay a finance charge added to their initial down payment. The service is only available in select states and functions as a non-subscription alternative for broad merchant access.

• Sezzle Balance: Launched in 2025, this segment is a stored-value product that allows consumers to maintain funds within their Sezzle account for use toward eligible purchases or payments on the platform. Funds can be added via eligible refunds, converted Sezzle Spend, linked debit cards or bank accounts, or promotional credits. Sezzle Balance funds are nonrefundable and not redeemable for cash except as required by applicable law.

• Sezzle Up: This segment is an opt-in feature that allows consumers to report their Sezzle Platform transactions to credit bureaus to build a record of timely payments. To qualify, consumers must pay off at least one order on time and in full, link a checking account as their default payment method, and verify their account with a social security number (U. S.) or social insurance number (Canada). Sezzle Up supports credit building and increased spending limits over time.

• Long-Term Lending: Through collaboration with third-party lenders, this segment enables consumers at participating merchants to access interest-bearing monthly fixed-rate installment-loan products for larger-ticket items up to $15,000, extending up to 60 months. Sezzle earns a fee from lending collaborators for marketing, referral, and application processing using its proprietary underwriting analysis, without originating or holding loans in its portfolio.

Sezzle Inc. operates in the highly competitive buy now, pay later industry, facing rivals such as Affirm, Afterpay (a subsidiary of Block, Inc.), Klarna, PayPal’s “Pay Later,” and Zip in the U. S. market, and Klarna, Affirm, and Afterpay in Canada. The company differentiates itself by targeting consumers with little-to-no credit history, offering flexible repayment schedules, and waiving fees through its hardship program. Its public benefit corporation status and focus on financial empowerment serve as competitive advantages in attracting ethically aligned consumers and merchants.

Sezzle Inc. serves a predominantly young, tech-savvy consumer base, with approximately 81% of consumers who placed orders during the year ended December 31, 2025, belonging to the Gen Z and Millennial generations (ages 18–48). The company also serves small-to-medium-sized businesses and enterprise merchants across numerous verticals, helping them increase average order value and reduce abandoned carts. While no specific merchant names are disclosed as constituting 10% or more of revenue, Sezzle Inc. relies on a diverse merchant base spanning direct-to-consumer brands and larger retailers.