Eye on BNPL: Sezzle’s Next Move; Ulta Adds Klarna Option

Why It Matters

Sezzle’s broadened ecosystem aims to increase user stickiness and capture higher transaction spend, while Klarna’s Ulta partnership expands its retail footprint, intensifying the race for consumer wallets in the U.S. BNPL market.

Key Takeaways

• Earn tab tapped 5 million times since launch
• Pay‑in‑5 drives 44% higher average order value than Pay‑in‑4
• Sezzle Points adds cash‑back, surveys, and gift‑card redemption
• Sezzle Mobile offers AT&T‑based phone plans
• Ulta now lists Klarna alongside Afterpay for U.S. shoppers

Pulse Analysis

Sezzle’s Earn feature, introduced a year ago, is more than a simple cash‑back tab; it serves as a habit‑forming gateway that keeps users inside the app between purchases. By aggregating rewards across fuel, groceries and dining, the platform has amassed five million taps, providing a data trove that informs product development. This user‑engagement strategy mirrors the broader "super‑app" trend, where fintechs bundle financial services with lifestyle incentives to deepen loyalty and generate cross‑sell opportunities.

Building on Earn’s momentum, Sezzle rolled out Pay‑in‑5, a five‑installment payment option that has already shown a 44% uplift in average order value compared with its legacy Pay‑in‑4. The higher ticket size reflects consumer willingness to stretch payments when paired with tangible rewards. Complementary initiatives such as Sezzle Points—offering cash‑back, survey earnings, and gift‑card redemption—further incentivize repeat usage. Additionally, the launch of Sezzle Mobile, an AT&T‑network phone plan, marks the company’s first foray into non‑payment services, signaling an ambition to become a broader consumer‑finance platform.

Meanwhile, Klarna’s integration with Ulta Beauty expands its U.S. merchant network, positioning the Swedish BNPL leader alongside established rivals like Afterpay. Ulta’s multi‑BNPL offering gives shoppers flexibility and increases checkout conversion rates, a critical metric for both retailer and provider. For Klarna, the partnership provides access to Ulta’s sizable beauty‑spending demographic, accelerating its growth trajectory in a market where consumer credit preferences are rapidly evolving. Together, these developments underscore a competitive shift toward diversified, app‑centric ecosystems that aim to capture more of the consumer’s financial and lifestyle spend.