The Bank Slate


Zip lines up purchase of BNPL rival Sezzle

Zip, an Australian provider of Buy Now Pay Later services, has agreed to buy Minneapolis rival Sezzle.

Zip said in a press release that it will pay $356 million for Sezzle. The deal is expected to close in the third quarter. 

“We are delighted to be bringing Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability,” Larry Diamond, Zip’s CEO, said in a press release. 

Zip said in the release that the U.S. is its fastest-growing market. By acquiring Sezzle, Zip said the United States will account for about 60% of its total transaction volume. 

Sezzle, meanwhile, has agreements with Discover Financial Services, Ally Financial and Alliance Data Systems. Discover has also invested $30 million in the BNPL provider. 

The Zip deal “will be a great cultural fit for both our organizations and we’re excited to be part of Zip’s next chapter,” Charlie Youakim, Sezzle’s CEO, said in the release. 

The deal is coming at a time when BNPL providers are facing scrutiny from the Consumer Financial Protection Bureau.

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