Right now, BNPL has an appeal to Millennials and Gen Z that keeps growing because for many it’s a preferable alternative to traditional credit cards and consumer loans. But Sezzle and others, may offer other forms of credit as consumers grow older and more financially able. What Sezzle is doing is “‘creditizing’ consumers’ debit cards.” 90% of consumers using Sezzle begin by paying with their debit card. They put 25% down, and then spread the rest of their purchase over the next six weeks in three 25% installments. This form of credit truly is different from using a credit card and rolling over, because there is interest on the BNPL charges but the consumer doesn’t pay them. The merchant pays the interest charges, using Sezzle to increase sales. Consumers only pay fees if they either miss payments or specifically request an extension of their original plan. The way Sezzle is set up, if a consumer misses an installment they lose the ability to make further Sezzle charges until that’s rectified. Like most nonbank lenders, Sezzle does not have the ability to raise deposits. Banks don’t come up when Sezzle’s sales force works with merchants who are interested in offering some version of BNPL. While some banks have offerings playing off the interest in such programs, their activity seems to be focused on plans to feed into their credit card offerings. To the degree that they are in the merchant market, banks appear to favor longer-term programs. Banks serve both businesses and consumers, but part of what sets the fintech BNPL players apart is that they have created a parallel financing world. They make the installment process possible as part of checkout at merchants and they also cultivate the audience that wants to use that option multiple times at multiple merchants. BNPL players have a presence at retailers and competition mounts, they will seek to offer other financial services to make their platforms stickier. Checking and savings accounts with debit cards designed to segue into BNPL options would be a natural. As for Sezzle, “eventually it might offer more traditional credit products. While many of the company’s clients are Millennial and Gen Z consumers, their needs correspond with additional types of credit, and Sezzle can add new programs that will cater to those evolving needs. This could be through a partnership with a large bank, or in some other format.