We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SEZL's Merchant Acquisition Strategy Vital for Its Growth Trajectory
Read MoreHide Full Article
Key Takeaways
SEZL targets enterprise merchants over volume, boosting GMV and y/y revenues by 123.3%.
New partners like SCHEELS and WAP.com reflect SEZL's focus on high-impact merchant relationships.
A five-year WebBank deal streamlines regulation, aiding SEZL's appeal to top-tier merchant partners.
Sezzle’s (SEZL - Free Report) merchant acquisition strategy has evolved. Firstly, the company has moved away from a volume-based approach and is prioritizing enterprise-level merchants, indicating a focus on quality over quantity.
While historical data may reveal a higher merchant count, SEZL’s current strategy of targeting large-scale merchants and expanding into new, less populated categories for Buy Now Pay Later adoption, such as grocery bills, is significantly more effective. The success of this targeted approach translates into securing higher-value relationships that contribute more to Sezzle’s gross merchandise volume (GMV).
In the first quarter of 2025, SEZL signed SCHEELS, a midwestern sporting goods store, and WAP.com, a social commerce platform. Although these new signings did not inflate the number of total merchants exponentially, they did add to the company’s GMV, increasing 64.1% year over year, thus contributing to the year-over-year top-line upsurge of 123.3%.
In addition to refining its merchant acquisition strategy by pursuing enterprise-level merchants, a banking partnership with WebBank has been crucial in realizing the full benefits of this strategy. Sezzle disclosed its five-year-long partnership with WebBank in the third quarter of 2024 earnings. This collaboration provides an edge to Sezzle in merchant acquisition, as it serves more streamlined and attractive terms.
By partnering with WebBank, SEZL is operating under a unified regulatory framework, which reduces regulatory burden for merchants. Furthermore, WebBank, via Sezzle’s marketing efforts, offers loans to U.S. customers to finance purchases of merchant products via the company’s platform or its direct merchant network. This plan exudes the reliability and scalability of payment solutions to the merchants, boosting confidence that the company can support their growth and demand.
The combination of a robust infrastructure and simplified compliance makes Sezzle a no-brainer for merchants seeking to integrate a seamless BNPL option, bolstering the company’s ability to acquire high-quality partners.
SEZL’s Price Performance, Valuation & Estimates
The stock has skyrocketed a whopping 923.7% in the past year, significantly outperforming Green Dot (GDOT - Free Report) , FirstCash (FCFS - Free Report) and the industry as a whole. The industry has rallied 26.7%, whereas Green Dot and FirstCash have gained 6.8% and 19.5%, respectively.
1-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, SEZL trades at a forward price-to-earnings ratio of 38.69, above Green Dot’s 7.5, FirstCash’s 15.2 and the industry’s 22.91.
Image: Bigstock
SEZL's Merchant Acquisition Strategy Vital for Its Growth Trajectory
Key Takeaways
Sezzle’s (SEZL - Free Report) merchant acquisition strategy has evolved. Firstly, the company has moved away from a volume-based approach and is prioritizing enterprise-level merchants, indicating a focus on quality over quantity.
While historical data may reveal a higher merchant count, SEZL’s current strategy of targeting large-scale merchants and expanding into new, less populated categories for Buy Now Pay Later adoption, such as grocery bills, is significantly more effective. The success of this targeted approach translates into securing higher-value relationships that contribute more to Sezzle’s gross merchandise volume (GMV).
In the first quarter of 2025, SEZL signed SCHEELS, a midwestern sporting goods store, and WAP.com, a social commerce platform. Although these new signings did not inflate the number of total merchants exponentially, they did add to the company’s GMV, increasing 64.1% year over year, thus contributing to the year-over-year top-line upsurge of 123.3%.
In addition to refining its merchant acquisition strategy by pursuing enterprise-level merchants, a banking partnership with WebBank has been crucial in realizing the full benefits of this strategy. Sezzle disclosed its five-year-long partnership with WebBank in the third quarter of 2024 earnings. This collaboration provides an edge to Sezzle in merchant acquisition, as it serves more streamlined and attractive terms.
By partnering with WebBank, SEZL is operating under a unified regulatory framework, which reduces regulatory burden for merchants. Furthermore, WebBank, via Sezzle’s marketing efforts, offers loans to U.S. customers to finance purchases of merchant products via the company’s platform or its direct merchant network. This plan exudes the reliability and scalability of payment solutions to the merchants, boosting confidence that the company can support their growth and demand.
The combination of a robust infrastructure and simplified compliance makes Sezzle a no-brainer for merchants seeking to integrate a seamless BNPL option, bolstering the company’s ability to acquire high-quality partners.
SEZL’s Price Performance, Valuation & Estimates
The stock has skyrocketed a whopping 923.7% in the past year, significantly outperforming Green Dot (GDOT - Free Report) , FirstCash (FCFS - Free Report) and the industry as a whole. The industry has rallied 26.7%, whereas Green Dot and FirstCash have gained 6.8% and 19.5%, respectively.
1-Year Price Performance
From a valuation standpoint, SEZL trades at a forward price-to-earnings ratio of 38.69, above Green Dot’s 7.5, FirstCash’s 15.2 and the industry’s 22.91.
Sezzle has a Value Score of F.
The Zacks Consensus Estimate for SEZL’s earnings for 2025 has risen 47.5% over the past 60 days.
SEZL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.