“Our collaboration with Ally Lending enhances our customer financing offerings, enabling consumers to better manage their finances,” said Charlie youakim, Executive Chairman and CEO of Sezzle, in a press release. “Ally’s dedication to its customers and commitment to innovation aligns with our own vision and culture. “
The new partnership “will give Sezzle traders and buyers access to long-term financing options, complementing Sezzle’s existing short-term, interest-free offering,” the statement said.
Sezzle participates in the growth buy now, pay later (BNPL). The company allows buyers to make interest-free payments in four equal amounts over six weeks.
Sezzle said he’s over one million active customers and 10,000 merchants in partnership with its services.
BNPL providers see market growth, as the pay-as-you-go option is seen as a possible boost for smartphone purchases, which has been a challenge for retailers.
“We understand the economic situation that millions of Americans are currently facing,” said Hans Zandhuis, President of Ally Lending. “We are proud to partner with Sezzle to provide responsible and economical financing options, so consumers can feel more secure when making the purchases they need.”
Ally Lending offers “fixed rate monthly installment loan products” that last for up to five years and “$ 40,000 per installment plan”. The company, a branch of Ally Financial, has a “fully digital application process,” the statement said.
The release was approved by Youakim on behalf of the board.
Founded in 2016, Sezzle offers a BNPL payment platform that has caught the attention of investors. In July, the company ad that he had raised an additional $ 55 million.
“Sezzle is now in an even stronger position for all of its investors and very well positioned to accelerate its growth strategy and undertake investments in initiatives aimed at generating long-term value creation,” Youakim told the time.