Sezzle applies for national bank charter

Fintech company Sezzle Inc. has filed an application with the Comptroller of the Currency to establish a national bank, to be known as Sezzle Bank, N. A. The company has also applied for deposit insurance through the Federal Deposit Insurance Corp. (FDIC).

If approved, the new entity would offer a variety of products, including FDIC-insured deposit accounts, checking and savings accounts, and credit products. Sezzle aims to target digitally native consumers, specifically those new to credit or those who avoid traditional credit products like credit cards.

This move follows a trend among buy now, pay later (BNPL) providers seeking greater operational control and lower funding costs by reducing reliance on third-party banking partners. Competitors such as Affirm Holdings Inc. and Klarna have also pursued bank charters or industrial loan company status in the United States.