By moving into India, Sezzle will be able to capitalize on a booming digital payments and online shopping market. India’s demonetization efforts began in 2016 and have been bolstered by the switch away from cash amid the coronavirus pandemic. Big Tech has recently jumped into the fray, with companies from Amazon and Google to Silver Lake swarming to invest in telecom companies in the country.
“If this works, we have a massive opportunity in India … we think it’s well worth the opportunity,” Sezzle’s Chief Executive Officer Charlie Youakim told Reuters.
Sezzle began piloting the service in July while still integrating with the Unified Payments Service.
“Assuming expectations are met, we launch UPI [Unified Payments Interface] sometime this month, and then we’ll have some sort of sense come the end of October, and then we can turn on ahead of the holiday season,” Youakim noted.
The UPI has spurred the growth of digital payments in the country, hitting a record 1.34 billion transactions in June.
The Minneapolis-based company offers alternative payment options to shoppers who have foregone traditional credit methods, allowing customers to elect a short-term, interest-free installment plan.
The FinTech raised $55 million in its latest funding round in July, which will go to “accelerate its growth strategy,” Youakim said in a release at the time.
Sezzle, which is available in the U.S. and Canada, surpassed one million active users back in February.
Several of the largest tech companies that are present in India have recently introduced alternative payment methods as well, in a bid to reach and maintain more customers during the pandemic-induced economic crisis. Flipkart recently launched a “Part Payment” option, allowing customers to pay a portion immediately and the rest upon delivery. In April, Amazon launched Amazon Pay Later in India, offering installment payment plans for up to 12 months for customers.
Selected by Fintech Tube