The Sezzle Inc (ASX: SZL) share price will be one to watch this morning after the release of an update.
What did Sezzle announce?
This morning the buy now pay later provider announced that it has formed a business partnership with Ally Lending.
It is the B2B2C lending arm of Ally Bank, the banking subsidiary of Ally Financial (NYSE: ALLY). Ally Financial is a leading digital financial services company with US$184.1 billion in assets.
Ally Lending enables monthly fixed-rate instalment-loan products that extend up to 60 months in length and US$40,000 per instalment plan through a fully digital application process.
What is the partnership?
According to the release, the partnership between Ally Lending and Sezzle will give Sezzle merchants and shoppers access to long term financing options.
Management believes this complements its existing short-term, interest-free offering, without adding any balance sheet impact to Sezzle.
Sezzle's Executive Chairman and CEO, Charlie Youakim, commented: "Our collaboration with Ally Lending enhances our customer financing offerings, making it possible for consumers to better manage their finances. Ally's dedication to its customers and commitment to innovation aligns with our own vision and culture – making this partnership a good fit for us."
Ally Lending's President, Hans Zandhuis, was pleased with the partnership and appears confident it will help consumers and businesses through the tough economic environment.
Mr Zandhuis commented: "We empathize with the economic situation millions of Americans now face. We're proud to partner with Sezzle to offer budget-friendly, responsible financing options, so consumers can feel more secure when making the purchases they need."
With the Sezzle share price down 45% from the 52-week high it reached less than a month ago, investors will no doubt be hopeful this news is the catalyst to recovering some of these declines.
