SEZZLE

Charlie Youakim was a serial entrepreneur in Minneapolis who had previously co-founded Passport Labs (a parking technology company). He launched Sezzle in 2016 after noticing that younger consumers — millennials and Gen Z — were avoiding credit cards but still wanted the flexibility of paying over time.

The buy-now-pay-later model was already gaining traction in Australia (Afterpay) and Europe (Klarna), but the US market was wide open. Youakim built Sezzle as a simpler, more transparent alternative to credit.

The company initially listed on the Australian Securities Exchange (ASX) in 2019 before dual-listing on NASDAQ in 2022.

Sezzle makes money from merchant fees (typically 6% + $0.30 per transaction). Merchants pay because BNPL increases conversion rates and average order values.

Consumers pay nothing if they make all four installments on time. Late fees (restructuring fees) apply for missed payments but are capped.

Sezzle also generates revenue from Sezzle Premium, a paid subscription ($12.99/month) that gives users higher spending limits and additional perks. The company hit profitability in 2023.

Sezzle Pay is the core BNPL product — four installments over six weeks, interest-free. Sezzle Premium ($12.99/month) offers higher spending limits and exclusive deals.

Sezzle Up reports payment history to credit bureaus to help users build credit. Sezzle Virtual Card lets users pay with Sezzle anywhere Visa is accepted, not just at partner merchants.

The Sezzle app provides budgeting tools and spending insights.

Sezzle grew by targeting small and mid-size e-commerce merchants who couldn't get approved by Afterpay or Klarna. They built a strong presence in the fashion, beauty, and lifestyle verticals.

The Shopify integration was a major growth driver. Sezzle also differentiated through financial wellness features — their Sezzle Up program helps users build credit scores by reporting on-time payments.

The focus on financial inclusion and transparency resonated with younger consumers wary of traditional credit.

Competition from much larger, better-funded BNPL companies (Afterpay/Block, Klarna, Affirm, PayPal Pay Later, Apple Pay Later) is the existential challenge. Regulatory scrutiny of BNPL products is intensifying globally.

The company was delisted from the NYSE in 2022 due to falling below minimum market cap requirements — a humiliating moment, though they successfully relisted on NASDAQ. Default rates during economic downturns could pressure profitability.

Sezzle listed on the ASX in 2019 and later on NASDAQ. Investors include Canaccord Genuity, Vanderbilt University endowment, and various institutional investors.

The ASX listing was strategic — it tapped into Australian investor appetite for BNPL companies following Afterpay's massive success. The company has raised approximately $140 million total across equity and debt.