PYMNTS-MonitorEdge-May-2024

Ally Now Provides Financing On Sezzle’s Platform

Ally Now Provides Financing On Sezzle's Platform

Ally Bank’s personal lending division, Ally Lending, has brought its financing services to retail payments platform Sezzle, according to a Tuesday (May 18) announcement.

“People expect to be able to pay over time when they check out,” Hans Zandhuis, head of Ally Lending, said in the announcement. “By blending our FinTech platform with the strong banking foundation of Ally Bank, we’re now able to give people that option.”

Select shoppers can now opt to pay over time by the way of longer-term, fixed-rate installment loans by Ally or buy now, pay later (BNPL) installment choices from Sezzle.

Shoppers can use Ally Lending to buy products in areas like sporting goods, jewelry and home furnishings. If Ally Lending offers an installment payment plan for any given purchase, shoppers using the Sezzle system will see “financed by Ally” at the time of checkout. Ally’s financing provides terms between three and 60 months for purchases up to $40,000.

“We’re on a mission to financially empower the next generation,” Sezzle Executive Chairman and CEO Charlie Youakim said in the announcement. “With Ally Lending’s personalized, flexible financing solutions now available on our platform, we’re able to offer even more options for consumers to budget their purchases and responsibly pay for what they want and need.”

The news comes as Sezzle has teamed up with Market America Worldwide, the global product brokerage company, to advance payment choices on the Shop.com platform. Greensboro, North Carolina-based Market America bought the comparison shopping platform Shop.com approximately a decade ago. The tie-up with Sezzle will prove independent distributors of Market America with a flexible payment choice.

In April, Sezzle announced that it intends to file a registration statement with the U.S. Securities and Exchange Commission (SEC) for a possible U.S. initial public offering (IPO). “The timing, number of shares of common stock to be offered, use of proceeds and the price for the proposed initial public offering have not yet been determined,” Sezzle said in an announcement at the time.

PYMNTS-MonitorEdge-May-2024