Payment solutions provider Sezzle (ASX:SZL)
has inked a three-year deal to host a deferred payments system for renowned retail channel Target’s in-store and e-commerce operations.
Under the agreement, Target customers will have the option of paying for products in installments on interest-free financing plans offered by Sezzle.
The deal came as a result of a successful demonstration of collaboration feasibility between the two firms, as Sezzle’s proof of concept satisfied the demands of Target’s trading activities.
The contract is considered an important coup for Sezzle, as BNPL businesses are flocking to the US retail sector to secure market share through partnerships with hallmark retail corporations.
Target is among the top 10 retailers in the world’s biggest economy, snapping up US$94 billion in gross income last year. The company reported a 639 per cent increase in earnings year on year for the first fiscal quarter this year.
Meanwhile, the $780 million ASX-listed fintech reported a 214 per cent increase year on year in merchant sales in the same quarter to $375.1 million. Sezzle’s new partnership with such a sizable enterprise is tipped to significantly boost these figures through higher conversion rates and increased customer usage. Moreover, a successful partnership with such a popular retail enterprise such as Target promises to lure more industry leaders to Sezzle’s payment platforms.
Shares in Sezzle Group (ASX:SZL)
are trading 22 per cent higher at $9.15