Bread, a division of Alliance Data Systems Corporation, recently announced its partnership with Sezzle (a fintech payment transfer company that transforms consumer shops). Alliance Data System is a leading provider of payment solutions, loyalty, and data-driven marketing. It provides customized solutions to improve consumers’ behaviors while looking forward to business profitability and growth for well-known brands.
The strategy behind the partnership of Bread and Sezzle is to offer the pay-over-time installment loan product of Alliance Data’s Bread through the merchant network of Sezzle.
Sezzle will support the deep underwriting of Bread and their installment loan product in reaching the customers interested in buying big-ticket items. Also, it will provide a comprehensive suite of products to its merchant partners.
Bread, acquired by the Alliance in the year 2020, provides a smooth checkout experience to its customers. It is also referred to as the highest-rated Buy Now, Pay Later (BNPL) platform. Bread is a digital payment platform that is white-labeled and works alongside the Sezzle. It will provide the Sezzle, its more than forty thousand merchants, and its future partners a considerable variety of options at the checkout.
Charlie Youakim, the CEO of Sezzle claims that Sezzle has recognition as the B Corp certified business. Its primary goal was to empower its shoppers financially by giving them transparent and best-in-class experiences. It also focuses on financial education, credit building, sustainability, ethical partnerships, and social good, which will be an essential factor for their next-generation consumers.
He also explains that the reason behind providing the solution of Bread’s installment to the customer is to have their Buy Now, Pay Later success. They also want to upgrade their product suits and add more lending options in their installments. This up-gradation will provide a variety of ways for big-ticket shoppers to pay.
The installment loans of Bread include the appropriate terms for qualifying customers, and certain loans come with the plan of 3 to 48 months having the interest rate nearly equal to 0%, compliments the buy now, pay later product of Sezzle. This also helps both businesses grow simultaneously. This partnership will help Bread generate loans using its Comenity Capital Bank.
According to Val Greer, Chief commercial officer and EVP of Alliance data, their approach towards their product is based on the consumer lens. This methodology of Alliance symbolizes the strength of its installment product and gives its customers a user-friendly experience. Also, the agreement between the Sezzle and Bread enables their mutual growth and reach, and it provides tools for success to more merchants.
At the beginning of 2022, Sezzle, a merchant network including merchants like Bass Pro and Target on the client list, is expecting to get the availability of Bread to merchants.