After finalizing a definitive commercial agreement, the expanded partnership includes integrating a buy now, pay later solution on the Discover Global Network. Further, a dedicated referral program will be implemented that introduced Discover credit and debit products to Sezzle’s user base.
“Discover’s capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers,” he added.
The shares will be issued utilizing the company’s “existing placement capacity under Listing Rule 7.1” which does not require shareholder approval and will “rank equally with the company’s existing shares on issue.”
The Discover Global Network has over 48 million merchant acceptance locations in addition to offering 2 million ATMs and cash access locations worldwide. Discover is accepted by 99 percent of stores that accept credit cards. The company has 20 alliance partner networks around the globe, including Diners Club International and PULSE.
“Our merchant partners are always a top priority and we know that providing them with additional payment options, such as a buy now, pay later structure, can be beneficial, especially in the current economic environment,” Jason Hanson, senior vice president of global business development and acceptance at Discover, said in a press release five months ago when the partnership with Sezzle was first announced.
Founded in 2016 and headquartered in Minneapolis, Sezzle has over 2.6 million active consumers that use its interest-free BNPL installment plans at 34,000 merchants online and in stores.
Sezzle recently teamed with Target to offer BNPL services. The FinTech said that people applying for its BNPL program will get an “instant” answer. The process will not affect credit scores unless someone opts into the company’s credit-building tool Sezzle Up.
Sezzle Chief Technology Officer Killian Brackey told PYMNTS in May that Sezzle can help target customers who are better credit risks than their credit scores indicate.
“We’re finding FICO credit vision scores don’t really capture the full picture of creditworthiness for the shorter-term, smaller-limit installment product,” he said.