Sezzle (ASX:SZL) - Founders, Charlie Youakim (left) and Paul Paradis (right)
Founders, Charlie Youakim (left) and Paul Paradis (right)
Source: Dynamic Business
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Buy now, pay later business Sezzle (SZL) is set to team up with the lending branch of America’s best online bank
  • The ASX-lister has inked an agreement with Ally Lending, which forms part of leading digital services company, Ally Bank
  • Essentially, the new deal will give Sezzle merchants and customers more ways to pay
  • Under the agreement, customers can access long-term financing options, adding to the financials stock’s existing short-term, interest-free repayment plans
  • Currently, Ally Lending hosts an online loan application and approval process, where a customer can apply to borrow up to US$40,000 (around A$55,780) to pay off over as many as 60 months
  • Following the news, Sezzle shares are up 5.55 per cent, trading for $6.85

Buy now, pay later business Sezzle (SZL) is set to team up with the lending branch of America’s best online bank.

The ASX-lister has inked an agreement with Ally Lending, which forms part of leading digital services company, Ally Bank.

More broadly, Ally Bank is a subsidiary of Ally Financial, a New York Stock Exchange (NYSE) listed stock.

Essentially, the new deal will give Sezzle merchants and customers more ways to pay. Under the agreement, customers can access long-term financing options, adding to the financials stock’s existing short-term, interest-free repayment plans.

“Our collaboration with Ally Lending enhances our customer financing offerings, making it possible for consumers to better manage their finances,” Sezzle CEO and Executive Chairman Charlie Youakim commented.

“Ally’s dedication to its customers and commitment to innovation aligns with our own vision and culture – making this partnership a good fit for us,” he continued.

Currently, Ally Lending hosts an online loan application and approval process, where a customer can apply to borrow up to US$40,000 (around A$55,780) to pay off over as many as 60 months.

Significantly, its parent company is a U.S. financial services giant — at the end of FY20, Ally Financial was estimated to hold a staggering US$184.1 billion (about A$256.74 billion) in assets.

Speaking to the need for flexible payment plans in the current climate, Ally Lending President Hans Zandhuis said the company empathised with “the economic situation millions of Americans now face.”

“We’re proud to partner with Sezzle to offer budget-friendly, responsible financing options, so consumers can feel more secure when making the purchases they need,” he concluded.

Following the news, Sezzle shares are up 5.55 per cent, trading for $6.85 per share at 11:29 am AEST.

SZL by the numbers
More From The Market Online

Macquarie profits fall 32% on ‘market volatility’ and low-achieving ‘green investments’

Macquarie Group Ltd (ASX:MQG) has shaved more than 30 percent off its net profit in the final quarter of the 2024 financial year

Namoi Cotton shares leap 13% on French-Singaporean bidding war

Namoi Cotton shares jump 13 percent as two agribusiness giants - one French and the other…

BHP confirms £31.1B takeover bid for Anglo American

BHP HAS confirmed its offer to takeover fellow mining giant Anglo American plc, following press speculation…

Judo Bank’s lending book officially hits $10B as UBS issues caution on Big 4

Judo Bank has reported that its lending book now reflects $10B only five years after winning…