Target Pilots Buy Now Pay Later With Sezzle
Sezzle, the installments payments platform, will be working on buy now, pay later (BNPL) services with Target, a press release says, which will test how the popular payment trend works with the retail giant’s operations.
The collaboration will involve “limited tests with a small portion of Target.com guests in two product categories to evaluate the efficacy of the Sezzle platform for Target’s retail operations.”
The release stresses that the pilot is only temporary for now, and doesn’t mean there will be any permanent partnership going forward with Target.
Sezzle says it plans to issue an update to the market when the pilot concludes, though when that will happen is still unknown, the release says.
BNPL has seen a surge in popularity due to the COVID-19 pandemic, which has squeezed peoples’ wallets and sent hurting businesses scrambling for ways to keep revenue flowing. With the more flexible nature of a BNPL payment, users might feel more secure in spending their money, even if they are being cautious due to the volatile economy.
In its September Buy Now, Pay Later Tracker, PYMNTS lists stats that show BNPL plans are gaining traction globally, with 39 percent of U.K. customers in a recent study saying they’d used BNPL to buy things, and 56 percent chose such plans to defer costs without gaining interest if they were using a credit card.
Meanwhile, millennials and Gen-Z spent 44 percent and 72 percent more on orders if BNPL was available as an option, the Tracker says.
The Tracker notes that one in three eCommerce retailers is expected to offer some type of BNPL payment plan by the end of 2021.
Sezzle has seen some wins this year, such as the appointment of Reid Bork, former PayPal senior director of accounts, to join its leadership team.
Bork is responsible for Sezzle’s large-scale acquisition efforts. After a recent $55 million capital raise, Sezzle plans to focus more on that area of business.