Quote:
Originally Posted by GranteedEV
I made a purchase a few weeks ago and took the Sezzle option out of sheer curiosity.
Instead of one big payment, it's four interest-free payments over six weeks billed directly to my CC. At no extra cost, but that splits it into three separate CC statements.
Cool, and I like that.
But I'm struggling to figure out how that would be profitable to Sezzle? Are they charging the retailer a service fee? If so, isn't the retailer losing money on the sale? Or does having Sezzle as an option actually increase sales volume?
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Fuzz's comment makes it look like Sezzle is different, but typically what happens with these payment schemes is the payment provider offers an initial interest free payment period to show the benefit (increased sales) to the retailer. After the promotional period the retailer can then decide to either pick up the tab in order to maintain the additional sales or pass it on to customers.