Zip ‘in discussions’ to buy Sezzle amid BNPL market...

Zip ‘in discussions’ to buy Sezzle amid BNPL market upheavalArticle by Jaime Toplin | Jan 26, 2022

Buying Sezzle could help Zip scale and diversify.

• Zip has performed well: In 2021, the firm posted $5.8 billion in volume (+176% annually), with 7.3 million shoppers (+248% annually), per its annual report. It also more than doubled its retail partners to reach over 51,000 merchants worldwide.
• Sezzle’s network—which boasted $1.6 billion in sales, 3.2 million customers, and 44,400 merchants as of Q3 2021—could substantially elevate its positioning. And Sezzle is more popular in the US: 11% of US respondents to a Momentive poll had used Sezzle, compared with just 4% who had used Zip.

Sezzle also offers unique attributes that could complement Zip’s business, like a bevy of long-term financing partners. And Sezzle’s tie-up with Discover can enable cross-sell into a large base.


With BNPL poised to reach more than 3 in 10 US digital buyers by 2023, more providers are jumping into the ring, including incumbent issuers and card networks. Their customer relationships and wide reach could disintermediate digital-first giants that currently dominate the market—a trend that’s already pushed pure play providers to ramp up merchant partnership efforts, move into niche verticals, and diversify their offerings. Acquiring Sezzle could move Zip forward in its push to grab share through scale and diversification.


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