Sezzle (ASX:SZL) share price tumbles despite new agreement

The Sezzle Inc (ASX:SZL) share price is under pressure on Friday despite announcing a new agreement this morning with Discover…

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The Sezzle Inc (ASX: SZL) share price is trading lower on Friday morning despite the release of an announcement.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 1% to $10.33.

Despite this decline, the Sezzle share price is still up a remarkable 65% since the start of the year.

What did Sezzle announce?

This morning Sezzle released an announcement relating to a new agreement with a payments giant.

According to the release, the company has signed an agreement with digital banking and payments services company, Discover.

The agreement will allow select US merchants on the Discover Global Network to offer their customers an interest-free BNPL option through Sezzle’s platform. Positively, the process will involve little to no upgrades to their existing payments systems.

The Discover Global Network has more than 48 million merchant acceptance locations and two million ATM and cash access locations around the world. Discover is accepted by 99% of places that take credit cards in the United States. Its brands also include Diners Club International and PULSE.

Agreement to accelerate business development

Sezzle’s Executive Director and President, Paul Paradis, believes the agreement will help accelerate business development.

He commented: “Our partnership with Discover will help to further accelerate our business development efforts by connecting our team with Discover and its established relationships.”

Discover’s Senior Vice President of Global Business Development and Acceptance, Jason Hanson, spoke positively about the agreement.

Mr Hanson said: “Our merchant partners are always a top priority and we know that providing them with additional payment options, such as a buy now, pay later structure, can be beneficial, especially in the current economic environment.”

“We are able to leverage our unique technology capabilities and vast network of merchant relationships to provide Sezzle the ability to grow its business and provide new payment opportunities,” he added.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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