The Sezzle Inc (ASX: SZL) share price is pushing higher on Thursday.
In morning trade, the buy now pay later (BNPL) provider’s shares are up 2% to $7.47.
Why is the Sezzle share price pushing higher?
Investors have been buying Sezzle’s shares after the release of an announcement this morning.
According to the release, the company has now launched its long-term financing options with Ally Lending. It is the personal lending arm of Ally Bank, the banking subsidiary of Ally Financial (NYSE: ALLY).
The company notes that this financing solution expands upon Sezzle’s core BNPL product. It offers longer loan terms for higher ticket transactions.
Ally Lending enables monthly fixed-rate instalment-loan products that extend up to 60 months in length and US$40,000 per instalment plan through a fully digital application process. This is similar to the Zip Money offering by Zip Co Ltd (ASX: Z1P).
Management believes that this supports its mission of financial empowerment. It notes that Ally’s financing solution is a more transparent, responsible, and consumer-friendly option for consumers. As a result, it feels that the launch of Sezzle’s long-term product is an additional advantage to shoppers that use Sezzle as a financial co-pilot on their path to financial empowerment.
Sezzle’s President, Paul Paradis, commented: “We heard from our merchants that they were looking for solutions to suit a wider range of products, including higher-priced items. With Ally Lending’s personalized, flexible financing solutions now available on Sezzle’s platform, we offer shoppers a responsible, transparent way to finance higher ticket items over a longer period. It’s a win-win for retailers and consumers.”
Despite today’s gain, the Sezzle share price is still down a massive 38% from its 52-week high of $11.99.
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More reading
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The post Sezzle (ASX:SZL) share price pushes higher following update appeared first on The Motley Fool Australia.
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