Minneapolis-based startup Sezzle Inc.’s underlying quarterly merchant sales for the fourth quarter of 2019 topped $100 million for the first time. The numbers highlight the company’s fast growth. The fourth quarter underlying merchant sales of $105.1 million marked a 468 percent increase from the $18.5 million posted in the fourth quarter of 2018.
Some have called Sezzle’s business a “buy now, pay later” platform. When purchasing from retailers who use Sezzle, customers can pay for purchases by making four payments over six weeks. The model is aimed at consumers who have poor credit histories or no credit history.
“The vast majority of revenues are merchant fees,” said Charlie Youakim, Sezzle’s CEO and Executive Chairman, in an email to Twin Cities Business. He added that about 20 percent of the company’s revenue comes from user fees, which can be collected if a customer misses or reschedules a payment.
“Our company is highly focused on revenue growth at this point,” said Youakim. “We're investing in capturing a significant market share in this growing sector of payments.”
The company also crossed a new threshold during the quarter with more than 10,000 merchants actively using Sezzle’s platform.
Sezzle went public in July 2019 on the Australian Securities Exchange (ASX).