News

Sezzle’s BNPL Option Helps Building Credit Score

Sezzle’s Pay-in-2 option expands the range of the company’s existing BNPL products and may help customers build their credit score in conjunction with the Sezzle Up feature

Sezzle's BNPL Option Helps Building Credit Score

Image: pixabay.com

Sezzle, a fintech company that offers Buy Now Pay Later (BNPL) and credit-building options for partner stores has introduced a new Pay-in-2 option, specifically designed for those customers who get paid every two weeks.

The installment payment platform’s new product enables buyers to split the payment into two equal parts, paying 50% at the time of purchase and the remaining 50% two weeks later. It is especially convenient for many consumers whose monthly salary is also divided into two payments arriving with the same regularity, which is a common payout structure for numerous firms and organizations.

Along with the previously existing BNPL offerings that let consumers pay in four installments over six weeks or pay monthly installments for up to 48 months, Pay-in-2 enables the user to opt in for the company’s credit-building feature Sezzle Up.

The latter service reports the client’s BNPL payment history to the TransUnion, Experian, and Equifax credit bureaus. Therefore, making one’s Pay-in-2 payments on time will help customers increase their credit scores. Additionally, Sezzle increases participating customers’ spending limit to give them more buying power as their credit scores grow.

Partner merchants that already offer Sezzle don’t have to take any action to add the Pay-in-2 option to their payment range, as the feature will be enabled through their existing integration. At the same time, they will benefit from the new offering which has the potential to boost conversion rates.

Besides, Pay-in-2 helps expand the instalments to more product and service categories e.g. grocery, monthly subscriptions and other higher-frequency smaller-sum items. Typically, splitting such purchases into multiple payments over six weeks or longer is not sensible, while a short-term 50/50 scheme might easily work in such cases, providing customers with greater flexibility in money management.

Last month, Celerant Technology partnered with Sezzle to enable retailers to offer customers Buy Now, Pay Later (BNPL) services.

Nina Bobro

1520 Posts 0 Comments

https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.