What is Sezzle?

Zara Hanif
October 26, 2021

What is Sezzle?

Sezzle is a payment platform like Klarna and Afterpay. They allow you to split up one transaction into 4 interest-free installment plans. Apps like these allow shoppers to spend more on items they would save up for, and instead pay later in smaller payments. 

As customers purchase directly from the company website, they will find it easy to spend more while online because of the convenience. Companies can benefit greatly from that combination of ease and convenience. The concept is similar to some credit cards where if you make the full payment when it’s due so you don’t incur interest. 

Sezzle is a platform that’s grown exponentially and is happy to brag about it. The company decided to make a commitment to the environment while showing how much they’re growing. In 2021, they began planting a tree for every new user. They’re at over one million trees.

How To Use Sezzle

First-time users must make a Sezzle account, and then you can select Sezzle at the time of the transaction, but only at a Sezzle integrated store. Currently, Sezzle does not offer any in-store integrations, only online checkout. 

When You Make an Account

Sezzle does run a credit check, but it’s a soft check. This ensures that the inquiry will not have a negative impact on their credit score. The soft check determines the payment plan they will offer. Their most common one is 25%, in 4 easy payments, over 6 weeks. Sezzle’s payment solution platform has no initial fees or interest on installments. Perks like those make shopping a dream.

Sezzle’s Payment Card Industry PCI level is 1, meaning they are certified at the highest level. They strive to make customers and merchants see they take security seriously. Signing up with Sezzle requires sensitive financial information, and they ensure quarterly scans of their data to protect it.

For your account, you will need to set up a payment method with either a bank account, credit card, or debit card. Sezzle also works with Google Pay and Apple Pay and can be used right from your mobile phone. 

Payments will occur over the course of a month and a half, so it’s good to think about when your credit card due dates are and what days you get paid. 6 whole weeks can be too long to pay off the remaining amount, and two weeks between each payment is quite a lot.

After You Purchase with Sezzle

Sezzle has good news for those that are concerned about 6 weeks of payments; you can pay off at any time. You can log in to your account dashboard, go to “orders,” “view order,” and then choose “pay now.” 

You won’t be able to pay the total order cost at once. You can pay the first installment, and then the second will be available to pay, and you will continue down the line. The difference is you have 4 transactions instead of one.

For those that are concerned about what happens if their payment fails or is late, there is a penalty fee. Sezzle does their best to be human in their response and understands if there’s an issue from not having sufficient funds or if the bank declined the purchase, etc.

Most credit card companies make money from late payments with interest, but Sezzle is more compassionate. They have a grace period for your late payment, and if you pay in that time the late payment fee will be waived. The grace period is dependent on your state but can be about 48 hours.

If you can’t make the payment in time, the fee is charged and the other installments are rescheduled until you’re able to pay the one you missed. There is also a fee if you change your payment date more than once. 

In the case of refunds and overcharges, the issue falls on the merchant or on the bank/credit bureaus if there is a mistake. Sezzle has a fact page to help customers figure out why there is an issue. Sezzle cannot issue a refund until confirmation from the merchant.

Sezzle’s buy now, pay later is super appealing to both shoppers and merchants. The petite giant has already been set up by many small online businesses.

Where Can You Use Sezzle?

Sezzle is an online-only payment solution and is mainly available for online boutiques. Target is their biggest retailer. Bullseye lovers can shop from target online, but also may notice the many small businesses on the platform.

The platform has a variety of merchants, many that cater to plus sizes, lingerie, and women of color. They also feature merch from punk artists like Fall Out Boy and MGK. The stores they work with offer clothing, accessories, and beauty products.

Consumers that love supporting small businesses, but also crave celebrity merch and target jeans will find Sezzle to be the right fit. The platform is still growing, and new merchants are encouraged to work with them.

Sezzle For Merchants

Sezzle wants to integrate with as many commercial businesses as they can. This is because their profits come from their business with merchants, and that means they need to build trust with their merchants. Currently, they have over 40,000 merchants working with them.

For Sezzle to achieve this, they assume all credit risk in their transactions. Sellers are not responsible for making sure customers pay. Sellers are also not required to give refunds or change their policies for Sezzle, and it is preferred to offer the same policies to Sezzle just like any normal transaction. 

Sezzle is available for major platforms like Woocommerce, Shopify, Shopifyplus, Wix, and many others and growing. Sezzle does have an API to integrate with companies that don’t use an eCommerce platform, and those interested will need to apply. Sezzle is not available for Facebook, GoDaddy, or Weebly.

Sezzle is an application with a big punch, and that can be attributed to their partners. They notably partner with Shopify, Boutique Hub, and BigCommerce. 

Sellers that are interested in working with Sezzle can make a merchant account. There are no set up fees involved in the process, but the transaction fees vary per business and are not standard. 

How Sezzle Profits

Sezzle can work with sellers of any size and state in their growth. The sellers that make an account will fill out questions about their enterprise and then Sezzle will calculate the cost based on the size, and products offered. 

Once calculations are confirmed, your company will be charged a set percent of every transaction and a processing fee. Those interested will need to find out the cost, and if happy, can go ahead and integrate Sezzle onto their platform. 

For more information, sellers can visit the merchant FAQs page. Sezzle has great features and is appealing to young shoppers and new enterprises. Their competitors, also happen to offer similar or the very same services.

What are Similar Apps?

Sezzle competitors that offer the same services are Klarna and Afterpay. There are other competitors, but Klarna and Afterpay are more closely related to Sezzle.

Klarna is an eCommerce company that offers 4 interest-free payments on one purchase. They do a soft credit check to protect your score and have payment split up by 2 weeks. They work with almost all the major retailers like Shein, H&M, Macy’s, and offer the option for companies that make under 3 million to work with them.

Klarna UI

Afterpay has all the same features: no interest, no fees for on-time payments, 2 weeks in between payments. They also work with the same major retailers like Klarna and have a separate page for small companies. 

Afterpay and Klarna have the same features as Sezzle, more brands, and can be used in-store as well as online. Sezzle can’t offer more, but there’s freedom in their smaller size. Shoppers that want to try buying from smaller businesses will find Sezzle has far more options than either platform. It’s easier to say you want to buy from crafters, and then end up buying 100s of H&M clothes and accessories with Afterpay. 

Afterpay ui

When it comes to small-time sellers, they’re less likely to get lost in the sea of retail giants. On Sezzle, there are fewer stores in comparison, and Sezzle accounts are exclusive to those stores. This means increased traffic from Sezzle’s page. While with Klarna shoppers will just go directly to Macy’s or Shein. 

Does Sezzle Fit You?

Sezzle is not the best fit for shoppers who prefer famous brands. It is a good fit for small stores that want to grow, and for customers that want more variety and customization than generic fashion stores.

For information about Sezzle, Sellers are encouraged to watch their video about growing with Sezzle. Shoppers can benefit from watching a tutorial video on how to set up an account and use Sezzle.

Click here to explore more eCommerce options, including competitors like Klarna

About the Author

Zara Hanif
Zara is a Research Content Writer/Editor for TrustRadius. She has an English BA and Web Design and Development AS. She enjoys the creativity and freedom of the tech world. In her free time she loves to create art, make jewelry, and work on sci-fi stories

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