Sezzle Pursues National Bank Charter to Add FDIC-Insured Deposit Accounts

Sezzle is moving to become more than just a Buy Now, Pay Later (BNPL) provider. By applying for a national bank charter with the OCC and FDIC, the company aims to offer full-scale banking services, including FDIC-insured deposit accounts. For retailers, this signals a major shift in how financing partners operate. If successful, Sezzle will be able to lend directly from its own deposits rather than relying on third-party banks or outside capital markets. This usually leads to more stable lending programs and potentially more competitive rates for merchants. For your business, a banked Sezzle means a more integrated ecosystem for your customers. They could eventually manage their savings and their payment plans in one spot, increasing brand loyalty and repeat usage. It also provides Sezzle with a lower cost of funds, which often translates into better approval odds for your shoppers. This move follows a broader industry trend where fintechs seek to shed their 'middleman' status to gain more control over the regulatory and financial landscape. While the application process is long and rigorous, this is a clear sign that BNPL providers are maturing into permanent fixtures of the financial system.

Source: PYMNTS

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