Sezzle Inc (ASX: SZL) shares are flying high in early trading on Thursday. At the time of writing, the Sezzle share price is rocketing 13.47% higher to $8.51.
This comes after the company provided an update on a new partnership deal with retailer Target in the United States.
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New partnership
Sezzle shares are having a bumper morning following the company's latest release.
In its statement to the ASX, Sezzle advised it's entered into a 3-year agreement with retailing giant, Target Corporation (NYSE: TGT). The deal follows Sezzle completing its proof of concept (POC) with Target, which looked at the feasibility of teaming up.
Under the new agreement, Sezzle's platform will be available in-store and across Target's digital platforms. This will allow customers to make purchases at Target and take up Sezzle's interest-free payment plans.
The latest partnership is considered significant to Sezzle, as Target reported first-quarter earnings of US$2.1 billion last month. This was well up on the US$284 million the United States retailer achieved in the prior corresponding period when lockdowns were in full force.
Sezzle's underlying merchant sales for the same period rose to US$375.1 million, well up on the US$119.4 million figure from the previous year.
Quick take on Sezzle
Founded in 2016, Sezzle is a buy now, pay later (BNPL) company that offers customers the ability to shop online and pay over instalments. Repayments consist of 4 interest-free payments spread over a 6-week period.
As of March 2021, the BNPL business had more than 2.4 million active users and over 34,000 participating merchants. Sezzle operates largely in the United States and launched into Canada in 2019.
How has the Sezzle share price been performing?
It's been a rollercoaster ride for Sezzle shareholders of late, with the company's share price moving around sharply. Sezzle shares reached an all-time high of $11.99 in February this year, before falling to around the $7 mark in mid-May.
