Why the Sezzle (ASX:SZL) share price is storming 9% higher on Thursday

The Sezzle Inc (ASX: SZL) share price is among the best performer on the All Ordinaries on Thursday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 9% to $5.37.

Why is the Sezzle share price storming higher?

The catalyst for the rise in the Sezzle share price today was news that its service is now live with a major US retailer.

Overnight US giant Target announced the official launch of its buy now pay later offering with Sezzle and Affirm (NASDAQ: AFRM) ahead of the busy holiday season.

Target’s President of Financial and Retail Services, Gemma Kubat, commented: “With the help of two new partners — Sezzle and Affirm — we’ve added new payment solutions that let you buy what you need now, take advantage of our best deals, and pay at a pace that works well for you.”

“We know our guests want easy and affordable payment options that work within their family’s budget. Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools that make our shopping experiences more flexible and personalized to guests’ needs, right in time for the holiday season.”

What impact could this have?

The deal with Target has the potential to boost Sezzle’s sales materially in the coming years.

The company notes that there are 1,909 Target stores across the US, with 75% of Americans living within 16km of one.

From its store network and online business, Target generated revenue of US$93.5 billion in 2020.

Anything else?

Also potentially giving the Sezzle share price a boost was an update on its Canadian operations.

Sezzle has advised that it has now reached the major milestone of 3,000 Canadian merchants and over 10,000 cross-border merchants. This comes after two years operating in the country.

Recent additions to its growing roster of retailers include Bentley, Stokes, Hart, FortNine, Umbra, Fairweather, JD Sports, size?, and EMERGE Commerce.

The post Why the Sezzle (ASX:SZL) share price is storming 9% higher on Thursday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Affirm Holdings, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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