Dive Brief:
- Buy now, pay later player Sezzle is adding mobile phone service to its list of offerings in a bid to boost its subscription business.
- Users of the Minneapolis-based company's smartphone app will have the option of adding a mobile phone plan that uses AT&T's 5G cellular network thanks to a partnership with the telecom services provider Gigs, a Wednesday news release said. Subscribers will pay lower monthly rates.
- "We're extending our platform into another essential category," Sezzle CEO Charlie Youakim said in the news release.
Dive Insight:
The plan is available for $29.99 a month to Sezzle Anywhere subscribers, according to the release. The plans will cost $39.99 per month for Sezzle premium subscribers and $49.99 per month for others.
A spokesperson declined to say when the plans would be available, but noted that they are cheaper than most mobile phone plans, which can cost more than $100 a month, according to Consumer Reports.
A waitlist to sign up for a mobile plan is posted on the company's website.
Subscribers are a focus for Sezzle because they spend more money and deliver higher profits for the BNPL player if they make a monthly commitment, Youakim said in a November interview. Subscribers can use the company’s buy now, pay later services at merchants that accept Visa, and are offered discounts.
The company’s news release, however, emphasized the cost savings.
“It's the next evolution of how we help users manage their financial journeys while providing savings on essential services,” Youakim said in the release.
The mobile plans offer unlimited data, calls and text messages, Wednesday's news release said.
In addition to splitting eligible purchases into short-term installment loans, Sezzle's smartphone app has additional offerings such as a virtual debit card and account management.
