The world of e-commerce has been changing rapidly in recent years, with more and more people turning to online shopping for convenience and affordability. One of the biggest trends in e-commerce is the rise of Buy Now, Pay Later (BNPL) services, which allow customers to pay for their purchases in installments rather than all at once. Sezzle is one of the leading BNPL firms in the United States, and the recent announcement that Sezzle files for listing on Nasdaq is the talk of the town. In this article, we’ll take a closer look at Sezzle as a company and its plans for the future.
What is Sezzle?
Sezzle is a financial technology company based in Minneapolis, Minnesota that offers Buy Now, Pay Later (BNPL) services to customers across the United States and Canada. Sezzle was founded in 2016 with the mission to provide customers with a flexible and affordable way to pay for their purchases.
Sezzle allows customers to pay for their purchases in four interest-free installments, with no credit check or hidden fees. Customers can sign up for Sezzle’s service through its website or mobile app and link their debit or credit card. When making a purchase from a merchant that partners with Sezzle, customers can select Sezzle as their payment option and complete their transaction as they normally would.
Once the purchase is complete, Sezzle pays the merchant in full and the customer pays Sezzle back in four equal installments over the course of six weeks. Sezzle charges no interest or fees as long as the customer makes their payments on time. Sezzle also offers customers the ability to reschedule their payments if they need more time to pay.
Sezzle’s BNPL services are designed to help customers afford purchases they might not be able to make otherwise. Sezzle’s services are particularly popular among young people, who may not have established credit histories or the financial means to pay for large purchases upfront.
In addition to providing a flexible and affordable payment option for customers, Sezzle also offers benefits to merchants. Sezzle can help increase sales and customer loyalty by offering customers a flexible payment option. Sezzle also takes on the risk of payment defaults and chargebacks, which can be a significant burden for merchants.
Sezzle has rapidly grown since its founding in 2016 and now has over 2 million active users and partnerships with over 34,000 merchants. Sezzle has also been recognized for its innovative approach to BNPL services and has won numerous awards for its services and technology.
Sezzle Files For Listing on Nasdaq
Sezzle’s journey to the Nasdaq began in 2019 when the company completed its initial public offering (IPO) on the Australian Securities Exchange (ASX). Sezzle became the first American fintech company to list on the ASX, which provided the company with access to capital and a global investor base.
Since going public on the ASX, Sezzle has experienced rapid growth and expanded its presence in the United States and Canada. Sezzle’s services have become increasingly popular among young people, who value the company’s flexible and affordable payment options.
In 2020, Sezzle announced that it had applied for a dual listing on the Nasdaq, which would allow the company to access a larger pool of investors and potentially increase its valuation. Sezzle’s application was approved by the Nasdaq in December 2020, and the company began trading on the Nasdaq under the ticker symbol “SZL” in January 2021.
Sezzle’s listing on the Nasdaq was a significant milestone for the company and the BNPL industry as a whole. The listing provided Sezzle with access to a larger investor base and increased visibility, which could help the company continue to grow and expand its services.
Sezzle’s successful journey to the Nasdaq is a testament to the company’s innovative approach to BNPL services and its commitment to providing customers with a flexible and affordable way to pay for their purchases. As Sezzle continues to grow and expand, it is likely that the company will continue to play a significant role in the evolution of the BNPL industry.
Why is Sezzle’s Nasdaq Listing Important?
Sezzle’s Nasdaq listing is important for several reasons. First, the listing provides Sezzle with access to a larger pool of investors and increased visibility, which could help the company continue to grow and expand its services. The Nasdaq is one of the world’s largest stock exchanges, with a global investor base and a reputation for listing innovative and high-growth companies. Sezzle’s listing on the Nasdaq could help the company attract new investors and potentially increase its valuation.
Second, Sezzle’s Nasdaq listing is a significant milestone for the BNPL industry as a whole. The BNPL industry has experienced rapid growth in recent years, driven by changing consumer preferences and a shift away from traditional credit products. Sezzle’s successful listing on the Nasdaq could help validate the BNPL business model and attract additional investment and attention to the industry.
Third, Sezzle’s Nasdaq listing could help the company compete more effectively with other BNPL firms, such as Afterpay and Klarna, which are also listed on major stock exchanges. The BNPL industry is becoming increasingly crowded and competitive, with new entrants launching services and traditional lenders entering the space. Sezzle’s listing on the Nasdaq could help the company differentiate itself from competitors and position itself as a leading player in the industry.
Overall, Sezzle’s Nasdaq listing is an important milestone for the company and the BNPL industry as a whole. The listing provides Sezzle with access to a larger investor base and increased visibility, which could help the company continue to grow and expand its services. It also validates the BNPL business model and could attract additional investment and attention to the industry. As the BNPL industry continues to evolve and mature, Sezzle’s Nasdaq listing could help the company remain a competitive and innovative player in the space.
The Benefits of Sezzle’s BNPL Services
Sezzle’s BNPL (Buy Now Pay Later) services offer several benefits to consumers, retailers, and the economy as a whole.
Firstly, Sezzle’s BNPL services provide consumers with a flexible and affordable way to pay for their purchases. Sezzle allows consumers to break their payments into smaller, interest-free installments, making it easier for them to manage their budgets and pay for larger purchases over time. This can help consumers avoid high-interest credit cards and other costly financing options, and reduce the risk of falling into debt.
Secondly, Sezzle’s BNPL services can help retailers increase their sales and customer loyalty. By offering Sezzle’s payment options at checkout, retailers can appeal to a wider range of consumers who might not be able to afford a purchase outright. Sezzle’s payment options can also help retailers reduce cart abandonment rates and increase average order value, as consumers are more likely to complete their purchases when they have access to flexible payment options.
Thirdly, Sezzle’s BNPL services can benefit the economy as a whole by increasing consumer spending and supporting small businesses. By providing consumers with affordable financing options, Sezzle can help stimulate demand for goods and services, which can lead to job creation and economic growth. Sezzle’s services can also help small businesses compete more effectively with larger retailers by offering flexible payment options that can attract new customers and increase sales.
The Future of Sezzle
Sezzle, has announced its intention to list shares of common stock on the Nasdaq Global Market. The move will enable the company to expand its potential investor base to the United States, as its shares of common stock continue to trade on the Australian Securities Exchange (ASX). Sezzle also plans to undertake a reverse split of its common stock to meet or exceed the minimum $4 bid price required by Nasdaq Global Market, subject to stockholder approval.
Sezzle’s decision to list on Nasdaq is seen as a natural evolution, given that the company is already filing necessary reports with the Securities and Exchange Commission (SEC). Although it is not seeking to raise capital as part of the listing, Sezzle’s CEO Charlie Youakim has expressed excitement about expanding the company’s potential investor base.
This announcement comes on the heels of Sezzle’s impressive fourth-quarter earnings release, which reported a record income of $38.3 million, a 16.2% jump from the previous year. The company has also identified other revenue sources that could bring in an additional $10 million in 2023.
Sezzle’s success is attributed to the hard choices and tough actions it took to reach profitability, as the company pivoted its model in late 2021. Partners who had grown frustrated with Sezzle’s changes eventually saw the firm’s perceptive approach to fixing its model and appreciated its transparency. Sezzle’s CEO believes that honesty helped to build smarter relationships with its partners.
Sezzle’s decision to list on Nasdaq is a significant move for the company, enabling it to expand its reach and offer its BNPL services to a wider audience.
Conclusion
Sezzle’s decision to list on the Nasdaq is a significant milestone for the company and the BNPL industry as a whole. As Sezzle continues to grow and expand, it will be interesting to see how the company competes with other BNPL firms and how the industry as a whole evolves to meet the changing needs of consumers.
