How Sezzle works with Kappa in Canada.

As an alternative payments provider, Sezzle Inc. allows customers to spread purchases over four installments, with no interest. With over 3,300 active merchant partners in the U.S., Sezzle launches in Canada with Kappa Canada.

“While the Canadian credit market differs from the U.S. credit market, we believe online shopping behavior is similar in both countries and that we will see similarly rapid adoption of installment payments as a preferred checkout option,” said Sezzle’s chief executive officer and co-founder, Charlie Youakim.

As Millennial consumers in the U.S. move away from credit cards, Youakim cites a similar aversion to interest and debt, in Canadian consumers. In a recent report from Payments Canada, 73 percent of Canadians aged 18 to 34 are more likely to choose an online company based on how easy it is to check out. To Youakim, Sezzle is a “ turning point for Canadian shoppers.”

When asked what differentiates Sezzle in the ever-competitive smart payment solution provider landscape, Youakim leaned into the platform’s high customer reviews, citing it as “consumers’ favorite “buy now, pay later” options.” He also credited Sezzle’s advanced algorithm and machine learning processes which allow the company to provide the “highest approval rates in the industry,” said Youakim, “which we believe is a big differentiator for consumers and our ecommerce partners,” he reiterated.

Customer convenience, and flexibility, is key. “We provide a simple, consistent experience for the consumer, splitting every purchase into four interest-free installments spread over six weeks,” said Youakim, assessing the lowest late fees if a payment is missed.

Sezzle launched in the U.S. a couple of years ago, attracting shoppers by way of what Youakim calls a more “consumer-friendly, convenient, and transparent payment solution” to traditional players in the space.

As for how Kappa supports the launch of Sezzle in Canada, Puneet Girdhar, the ceo of Kappa Canada said Sezzle is key to offering “flexibility in the buying process.” Kappa maintains “strong recognition in Canada that is rapidly growing with the younger millennial and Gen Z audience,” according to Youakim, and shopper convenience goals coincided with Sezzle’s mission.

Consumers pay 25 percent at the time of purchase, while Sezzle pays the merchant in full up front – assuming all repayment risk, automatically collecting the remaining installments every two weeks from a payment method on file, “so the shopper doesn’t have to remember to pay a bill on time,” according to Youakim.

A free choice for customers when arranged with merchant partners, installment payment offerings such as by Sezzle are aimed to be staunchly differentiated from traditional underwriting (and credit cards) – narrowing sights on the potent Millennial and Gen Z shopper.

“Our goal is to give consumers access to the things they want when they need them. We recognize that many are on a budget and access to credit is limited,” reiterated Youakim.