Target will soon be offering interest-free, flexible payment options to its online and in-store customers.
The big-box retailer has entered into a three-year agreement with Sezzle, following the conclusion of a pilot project with the company.
Sezzle’s buy now, pay later (BNPL) offering “increases the purchasing power for millions of active consumers by offering interest-free installment plans at online stores and select in-store locations. This increase in purchasing power for consumers leads to increased sales and basket sizes for the more than 34,000 active merchants that offer Sezzle,” the company noted in a press release.
Sezzle merchants’ Q1 sales rose to $375.1 million, up from $119.4 million a year earlier, according to MarketWatch.
The partnership between Sezzle and Target comes at a time when BNPL plans are fast becoming consumers’ preferred way to pay. That is not just for expensive purchases but also for routine household purchases such as grocery shopping.
BNPL plans are, in fact, gaining more popularity among higher-income groups. Seventy-five percent of consumers who choose to use BNPL have the funds to cover the full cost.