“Consumers love our product because it represents purchasing power but also budgeting for them,” says Sezzle co-founder and CEO Charlie Youakim. “They feel safe with it just like they do with the debit card. We’re driving a new wedge into payments between credit and debit. I call it the creditization of a debit card. I think it’s here to say because of that safety element that we give to the consumer.”

Charlie Youakim, CEO and co-founder of Sezzle, discusses the massive growth of the Buy Now, Pay Later industry and how that is reshaping ecommerce and retail in general:

Focused Uniquely On Credit Building

Sezzle is generally focused on the ecomm space, that’s where we do most of our work. We are present on over 44,000 merchant websites. The Buy Now, Pay Later industry, in general, is typically focused on ecommerce. So as that push back into ecomm occurs (potentially due to increases in COVID causing more people to shop from home) we generally benefit from that.

We compete in this space by really focusing on our stakeholders, focusing on the merchants, focusing on the consumers, and doing the right thing by both of them. We really stand on the high road for the consumer. We are the only player in the space that focuses on credit building which is totally unique. We love it, our consumers love it and our merchant partners love it. By focusing on their needs, these consumers’ needs, and doing right by them and right by the merchants, you have a chance to do a really strong job within the sector.

Sezzle Pushing Into the Enterprise

With SMB’s we’ve been growing like wildfire. It just continues for us. That’s how we have that big count of merchants and we expect that to continue. We’re doing a great job there and the merchants love us. It’s viral in that space. For us now the push is into enterprise and in Target, Bass Pro Shops, those are two great examples of that for us. The reason we’re doing that is that our consumer wants to shop with us everywhere so we have to be everywhere. That means we have to be with SMB, we’ve got to be with mid-market, and we’ve got to be with enterprise.

That will be the push for Sezzle to continue to push in those spaces. If you look at the enterprise players in those spaces, what they want is they want a brand that they can believe in. That’s where you have Sezzle and our halo around doing right by the consumer helping them build their credit score up and being a partnerships player. That’s what really sets us apart.

Sezzle: The Creditization Of a Debit Card

The average order value per customer has been relatively stable. We’re around $100 per order. The only reason it’s been tracking a bit up for us is we’ve been expanding our services. We started with a pure ‘pay in four’ for over six weeks interest-free and so that’s where we tracked right around $100. But as we add long-term into the mix we’ve been starting to track upwards. The order values on a 12-month order or 12-month installment plan, tend to track towards $1,000. We feel it’s probably going to stay stable, it’s just going to be a mixed shift that creates any change for Sezzle.

We see from our consumers that they love our product because it represents purchasing power but also budgeting for them. They feel safe with it just like they do with the debit card. We’re driving a new wedge into payments between credit and debit. I call it the creditization of a debit card. I think it’s here to say because of that safety element that we give to the consumer.