Sezzle partners with Ally Lending

Rhea-AI Summary

Sezzle Inc. has announced a new partnership with Ally Lending, the lending arm of Ally Financial (NYSE: ALLY). This collaboration will enhance Sezzle's financing options, allowing consumers to access long-term installment loans of up to US$40,000 for up to 60 months. The partnership aims to support consumers in managing their finances better, especially in the current economic climate. Sezzle's platform currently serves over 1.6 million consumers and 17,600 merchants, promoting financial empowerment through interest-free payment plans.

Positive

• Partnership with Ally Lending expands Sezzle's financing options to long-term loans.
• Sezzle enhances customer offerings, enabling better financial management for consumers.
• No balance sheet impact for Sezzle from this partnership.

Negative

• None.

MINNEAPOLIS, Sept. 22, 2020 /PRNewswire/ -- Sezzle Inc. (ASX:SZL) (Sezzle or Company) // Installment payments platform, Sezzle, is pleased to announce its business partnership with Ally Lending, 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 as of June 30, 2020.

Ally Lending enables monthly fixed-rate installment-loan products that extend up to 60 months in length and US$40k per installment plan through a fully digital application process. Ally lending is backed by the number one digital bank in the USA, Ally Bank. Ally's fierce commitment to "Do Right" and "Obsess over the customer" has led to a customer NPS score of 68, demonstrating their commitment to the customer.

"Our collaboration with Ally Lending enhances our customer financing offerings, making it possible for consumers to better manage their finances," said Charlie Youakim, Executive Chairman and CEO of Sezzle. "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."

The culture, technology, and strong foundation of Ally Financial allow Ally Lending to continually evolve its financing products, services, and experiences while weathering economic storms.

The partnership between Ally Lending and Sezzle will give Sezzle merchants and shoppers access to long term financing options, complimenting Sezzle's existing short-term, interest-free offering, without adding any balance sheet impact to Sezzle.

"We empathize with the economic situation millions of Americans now face," stated Hans Zandhuis, President of Ally Lending. "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."

This announcement was approved by the Company's CEO and Executive Chairman, Charlie Youakim, on behalf of the Sezzle Inc. Board.

About Sezzle Inc.
Sezzle is a rapidly growing fintech company on a mission to financially empower the next generation. Sezzle's payment platform increases the purchasing power for more than 1.6 million Active Consumers across the U.S. and Canada by offering interest-free installment plans at online stores and select in-store locations. Sezzle's transparent, inclusive, and seamless payment option allows consumers to take control over the spending, be more responsible, and gain access to financial freedom. When consumers apply, approval is instant, and their credit scores are not negatively impacted. This increase in purchasing power for consumers leads to increased sales and basket sizes for the more than 17,600 Active Merchants that offer Sezzle in the U.S. and Canada.

For more information visit sezzle.com.

About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company with $184.1 billion in assets as of June 30, 2020. As a customer centric company with passionate customer service and innovative financial solutions, we are relentlessly focused on "Doing it Right" and being a trusted financial services provider to our consumer, commercial, and corporate customers. We are one of the largest full-service automotive finance operations in the country and offer a wide range of financial services and insurance products to automotive dealerships and consumers. Our award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage lending, personal lending, and a variety of deposit and other banking products, including savings, money-market and checking accounts, certificates of deposit (CDs), and individual retirement accounts (IRAs). Additionally, we offer securities brokerage and investment advisory services through Ally Invest. Our robust corporate finance business offers capital for equity sponsors and middle-market companies.

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

For further images and news on Ally, please visit http://media.ally.com.

Sezzle CDIs
Sezzle's CDIs are issued in reliance on the exemption from registration contained in Regulation S of the US Securities Act of 1933 (Securities Act) for offers of securities which are made outside the US. Accordingly, the CDIs, have not been, and will not be, registered under the Securities Act or the laws of any state or other jurisdiction in the US. As a result of relying on the Regulation S exemption, the CDIs are 'restricted securities' under Rule 144 of the Securities Act. This means that holders are unable to sell the CDIs into the US or to a US person who is not a QIB for the foreseeable future except in very limited circumstances until after the end of the restricted period, unless the re-sale of the CDIs is registered under the Securities Act or an exemption is available. To enforce the above transfer restrictions, all CDIs issued bear a FOR Financial Product designation on the ASX. This designation restricts any CDIs from being sold on ASX to US persons excluding QIBs. However, you are still able to freely transfer your CDIs on ASX to any person other than a US person who is not a QIB. In addition, hedging transactions with regard to the CDIs may only be conducted in accordance with the Securities Act.

 

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SOURCE Sezzle

FAQ

What is the new partnership between Sezzle and Ally Lending about?

Sezzle has partnered with Ally Lending to provide consumers access to long-term installment loans of up to $40,000 for up to 60 months.

What are the benefits of the Sezzle and Ally Lending partnership?

The partnership allows consumers to manage their finances better by offering long-term financing options alongside Sezzle's existing short-term, interest-free plans.

How does the Ally Lending partnership impact Sezzle's financials?

The partnership does not add any balance sheet impact to Sezzle, keeping their financial position stable.

When was the partnership between Sezzle and Ally Lending announced?

The partnership was announced on September 22, 2020.

What are Sezzle's current consumer and merchant statistics?

Sezzle currently serves over 1.6 million active consumers and 17,600 active merchants.