Insights

Sezzle (ASX:SZL) share price higher on Discover investment & partnership

This BNPL provider is rebounding on Thursday…
The post Sezzle (ASX:SZL) share price higher on Discover investment & partnership appeared first on The Motley Fool Australia. –

The Sezzle Inc (ASX: SZL) share price is rebounding from yesterday’s huge selloff on Thursday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up a decent 3% to $8.40.

Why is the Sezzle share price sizzling today?

The catalyst for the rise in the Sezzle share price has been the release of a positive announcement this morning relating to Discover Financial Services.

Discover Financial Services is a digital banking and payment services company with one of the most recognised brands in U.S. financial services. The Discover Global Network has 48 million merchant locations and generated US$417 billion in total network volume last year.

According to the release, Discover Financial Services has agreed to invest US$30 million into Sezzle, based on a per share purchase price of US$6.58 (AUD$8.83). While this represents an 11% premium to the Sezzle share price at the close of play on Wednesday, it is a modest discount to where its shares were trading prior to yesterday’s Apple-related selloff.

The shares will be issued to Discover via Sezzle’s existing placement capacity under Listing Rule 7.1. This means that the issue does not require shareholder approval. These shares are due to be issued early next week.

Expanded partnership

In addition to the investment, the two parties intend to enter into an expanded partnership. This includes plans for a buy now, pay later network solution on the Discover Global Network, as well as a dedicated referral program. This program will introduce Discover credit and debit products to Sezzle’s customer base.

Sezzle’s Executive Chairman and CEO, Charlie Youakim, was very pleased with the development. He commented: “We are excited about our relationship with Discover, as we believe our mission, vision, and values align.”

“Discover’s capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers,” he concluded.

Following today’s gain, the Sezzle share price is now up a sizeable 34% since the start of the year.

The post Sezzle (ASX:SZL) share price higher on Discover investment & partnership appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sezzle right now?

Before you consider Sezzle, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sezzle wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

The Afterpay share price just had its worst day since February 2021. Here’s why

ASX 200 rises, Afterpay sinks, Macquarie Telecom soars

BNPL ASX share prices tumble as PayPal declares no BNPL late fees

Why ASX BNPL shares like Afterpay, Zip, and Sezzle are sinking

Why the Zip (ASX:Z1P) share price is down 10% on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!