In the dynamic world of fintech, some companies stand out for their ability to reinvent themselves in the face of adversity. One fintech in particular has recently captured attention by adapting its business model to specifically meet the needs of those addicted to deferred payments. By capitalizing on this niche, it has redefined its strategies by offering targeted and innovative services that attract enthusiasts of immediate purchases with staggered payments. This bold approach has allowed it to successfully relaunch itself, generating interest and admiration in the financial market.
Sezzle: a renaissance thanks to deferred payment enthusiasts
In 2022, the situation seemed desperate for Sezzle, a company from Minneapolis specializing in the Buy Now, Pay Later (BNPL) sector. Threatened with extinction, this fintech had burned most of the 115 million dollars raised during its initial public offering in 2019 on the Australian market. Their desperate attempts to sign major retailers encountered inevitable concessions, compromising profitability.
Faced with well-funded competitors such as Affirm and Klarna, Sezzle’s CEO, Charlie Youakim, knew he had to find a new source of revenue to keep the company afloat. It was then that he directed his attention toward a niche group: heavy users addicted to BNPL. Strategic launches and drastic budget cuts allowed Sezzle to reinvent itself and get back on the path to success.
The bold choice of a subscription model
In 2022, Sezzle introduced a subscription service for 12.99 dollars per month, specifically targeting frequent BNPL users. The “Sezzle Anywhere” option was launched in 2023 for 17.99 dollars per month, enabling in-store purchases with staggered payments. This innovative approach attracted 529,000 subscribers, transforming Sezzle’s business model and increasing their share of revenue from subscriptions.
A notable impact on the fintech market
By focusing on avid users, Sezzle not only strengthened its position in the market but also influenced other players in the industry to reconsider their models. This relaunch has paid off, as the company reported 53 million dollars in net revenue for the first nine months of 2024. The subscription model has proven to be a lucrative strategy, highlighting how smart adaptation to consumer needs can transform challenges into opportunities. Discover the 10 fintech startups to watch closely for an overview of current trends in this dynamic sector.
