Sezzle Inc. (NASDAQ: SEZL)

Sezzle Inc., operating under the ticker symbol SEZL, is a company that has revolutionized the payments industry with its digital platform. Established in 2017, Sezzle has rapidly grown to serve approximately 2.6 million active consumers, providing them with a flexible alternative to traditional credit. The company's mission is to empower consumers, enabling them to take control of their spending, be more responsible, and gain financial freedom.

Sezzle's primary business activities revolve around its digital payments platform, which is designed to offer consumers installment payment options for their purchases. The company's product portfolio includes the Sezzle Platform, Pay-in-Four, Pay-in-Full, Pay-in-Two, and Sezzle Virtual Card. The Sezzle Platform is the company's flagship product, allowing consumers to purchase and receive merchandise immediately while paying in installments over time. Pay-in-Four is a popular option, where consumers pay a fourth of the purchase price upfront and the remaining amount in three equal installments every two weeks. Pay-in-Full and Pay-in-Two are alternative installment options catering to consumers who do not qualify for Pay-in-Four. The Sezzle Virtual Card is a close-end installment loan that provides consumers with access to the Sezzle Platform in the form of a virtual card.

Sezzle operates primarily in the United States and Canada, focusing on small-to-medium-sized businesses (SMBs) and enterprise merchants. The company's platform is user-friendly and easy to integrate, making it an attractive option for merchants wanting to offer their customers a flexible payment option. Sezzle's merchants benefit from the company's network effects, providing access to a deep pool of consumers equipped with the Sezzle payment product.

Sezzle generates revenue primarily through merchant processing fees, which are based on a percentage of the transaction value plus a fixed fee per transaction. Subscription revenue is another significant source of income, with consumers able to subscribe to Sezzle Premium and Sezzle Anywhere for a recurring fee.

Sezzle's commitment to sustainability and financial empowerment sets it apart from other payment companies. The company's focus on creating a positive impact on society, demonstrated by its certification as a B Corporation, has positioned Sezzle as a purpose-driven company. Sezzle's proprietary systems and risk management strategies enable it to effectively manage credit risk and provide a seamless payment experience for consumers.

Sezzle's customers include a wide range of merchants, from SMBs to enterprise companies. The company's largest merchant concentration is with scaled e-commerce platforms, exposing Sezzle to risks associated with these partners' business operations and financial performance. Sezzle's consumer base is primarily composed of young adults, particularly Gen Z and Millennials, who are tech-savvy and socially conscious. These consumers use credit cards less frequently than other generations and often lack access to traditional credit. Sezzle's products and services cater to these consumers, providing them with unique solutions to their payment challenges while building beneficial credit records with the Sezzle Up feature.