Do you have Sezzle shares (ASX: SZL)? What’s in store for FY22?


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the Sezzle Inc The stock price (ASX: SZL) managed to reverse its large cap peers Buy Now, Pay Later (BNPL) in terms of FY 21 gains.

The shares of the American company BNPL generated a return of 134% during FY21, compared to the Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) which increased by 92% and 43% respectively.

With FY21 said and done, let’s take a look at what Sezzze is doing in FY22.

What Sezzle has planned for FY22

Launch of Sezzle Up

Sezzle Up was released in 4Q20 as an “upgrade” version of the existing Sezzle experience.

For customers, the benefit of upgrading to Sezzle Up is that it allows the business to report their payment histories to the credit bureaus. By making payments on time, customers can improve their credit scores and increase their spending limits to give them more purchasing power.

For Sezzle, the primary method of processing payments is an Automated Clearing House (ACH).

In the company’s first quarter results, it observed a positive development of payments to ACH. In 1Q20, less than 3% of dollar payment volume was processed with ACH. In 1Q21, ACH was trading over 15% of volume in dollars.

Sezzle said ACH payment processing fees are about 150 basis points lower than traditional payment methods.

Fortunately, the first quarter results helped push Sezzle’s stock price up 7% to $ 9.63.

International expansion

International markets are certainly the name of the game for BNPL companies listed on the ASX.

While Afterpay and Zip could steal the show of international expansion, Sezzle has also been busy testing the waters of global opportunity.

In July 2020, Sezzle launched a pilot product-market fit in India. According to its FY20 annual report, the company said “although it is still in its very early stages, we are optimistic about the opportunity to be a pioneer in such a fast growing market.”

In December 2020, the company began product discovery testing in Europe, stating “we are cost-effectively building infrastructure for future expansion”.

More recently, in its first quarter results, the company announced its entry into Brazil with a “strategy plan similar to that of India and Europe: limited investment, low risk and minimal resource requirements”.

Although the timing of the product’s launch is uncertain, Sizzle said Brazil represents “a long-term opportunity given that it is one of the ten largest countries in the world, as measured by GDP and population.”

Snapshot of the Sezzle share price

As of this writing, Sezzle’s shares are even trading at $ 9.01.

Based on the current share price, Sezzle has a market cap of around $ 930 million.


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