The Sezzle (ASX:SZL) share price has leapt 19% in 2 days. Here's why

It's been a big 2 days on the ASX for buy now, pay later provider, Sezzle.

| More on:
Two laughing young women holding shopping bags ride an escalator up to another level in a Scentre Group shopping centre

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Sezzle Inc (ASX: SZL) share price has taken off over the past 2 days after the United States cult retailer Target Corporation (NYSE: TGT) launched the buy now, pay later (BNPL) service.

Those shopping with the retail giant ahead of the holiday season will now be able to pay for their purchases in instalments through Sezzle or Affirm, which is owned by Affirm Holdings Inc (NASDAQ: AFRM).

The Sezzle share price stormed 12.6% higher yesterday and is continuing to gain today.

At the time of writing, the Sezzle share price is $5.85, which is 3.54% higher than its previous close.

That means the BNPL provider's stock is now trading for 18.66% more than it was at Wednesday's close.

Let's take a closer look at the news that's got the market excited about Sezzle this week.

Sezzle share price soars on Target launch

The Sezzle share price is rocketing higher this week after Target announced it has launched the BNPL provider in-store and online.

Target shoppers can now split their payments into 4 instalments using Sezzle's platform.

They can also split large purchases into monthly instalments using Affirm.

Sezzle announced the partnership in June after the companies signed a 3-year agreement.

Under the agreement, Sezzle can be used by customers shopping on Target.com and the Target app. Target shoppers can also use Sezzle on orders that use the retailer's same-day fulfillment services.

Additionally, those shopping in-store can access Sezzle's BNPL service by paying with Apple Pay, which is owned by Apple Inc (NASDAQ: AAPL), or Google Pay which is owned by Alphabet Inc (NASDAQ: GOOGL).

Target's president of financial and retail services, Gemma Kubat, commented on the news that's been driving the Sezzle share price over the past 2 days, saying:

We know our guests want easy and affordable payment options that work within their family's budget.

Through our partnerships with Affirm and Sezzle, Target is investing in new financial tools that make our shopping experiences more flexible and personalised to guests' needs, right in time for the holiday season.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares

A woman sits back and enjoys the view from a paraglider, indicating share price lifts for ASX travel and adventure shares
BNPL shares

Up 71% in 3 weeks, have Zip shares topped out?

Despite the stellar run higher, Zip shares are still trading at a fraction of their February 2021 highs.

Read more »

A woman sits on a chair smiling as she shops online.
BNPL shares

Why is the Zip share price the best-performing ASX 300 stock so far this year?

The best-performing ASX 300 stock of 2024 so far is an unlikely hero.

Read more »

A happy girl in a yellow playsuit with a zip gives the thumbs up
Share Gainers

If I'd put $5,000 into Zip shares on 9 October, here's what I'd have now!

The stars have been aligning for Zip shares.

Read more »

woman using affirm to pay
BNPL shares

Up 288% in 6 months, Zip share price tipped for more outsized gains

Zip shares have rocketed 288% in just six months.

Read more »

A businessman stacks building blocks.
BNPL shares

Up 93% since October, why are Block shares marching ahead again on Friday?

ASX 200 investors have been snapping up Block shares.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
BNPL shares

Zip share price up 58% in 7 trading days! What's going on?

This BNPL provider has been on fire recently. But why?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
BNPL shares

Shares sold: Why Zip is under fire from its own shareholders

Some Zip investors had their shares sold without their knowledge.

Read more »

Sad woman with her hand on her head and holding a credit card.
BNPL shares

Zip share price tumbles 9% despite explosive first-half growth

Zip had a strong half and delivered a big improvement in key metrics.

Read more »