Discover targets BNPL offering with $30m Sezzle investment
US digital banking and payment services company Discover has invested $30 million in buy now, pay later (BNPL) fintech Sezzle.
In addition to the investment, the companies plan to enter into an “expanded partnership”, which includes plans to launch a BNPL network solution on the Discover Global Network.
Founded in 1986, Discover is currently one of the largest card issuers in the US. The company issues the Discover card and offers private student loans, personal loans, home loans, and checking and savings accounts.
The pair will also look to collaborate on a dedicated referral program introducing Discover credit and debit products to Sezzle’s consumer base.
Sezzle claims to have around 2.6 million active users of its payment platform and is currently offered by 34,000 merchants. The company offers interest-free instalment plans at online stores and select in-store locations.
BNPL offerings appear to be a hot topic at present, with tech giant Apple reportedly in talks with Goldman Sachs to launch its own BNPL service.
Meanwhile, BNPL firm Klarna raised a mammoth $639 million last month in a funding round led by Japanese VC SoftBank.