Digital lending offering gives shoppers longer loan term options as e-commerce rises
Ally Lending, the personal lending arm of Ally Bank, a subsidiary of Ally Financial Inc. (NYSE: ALLY), now offers its financing on retail payments platform Sezzle. The first integration of its type for Sezzle – select shoppers can now choose to pay over time using Ally’s longer-term, fixed-rate installment loans or Sezzle’s buy-now-pay-later, installment offerings. Ally’s financing extends to purchases up to $40,000 with 3-60-month terms.
The launch comes at a time when e-commerce is on the rise. Consumers spent more than $800 billion shopping online with U.S. retailers last year, a 44% increase from 2019.1 As they spend, they are also embracing alternative payment options. Over the past year, the use of “buy now, pay later” among younger generations has increased significantly, up 17% for Gen Z and 21% for millennials.2 Sezzle’s core product enables consumers to pay for retail goods over a six-week period with no interest or fees. Ally Lending’s offerings will expand upon Sezzle’s financing options, offering longer loan terms for higher ticket transactions.
“People expect to be able to pay over time when they check out,” said Hans Zandhuis, head of Ally Lending. “By blending our fintech platform with the strong banking foundation of Ally Bank, we’re now able to give people that option.”
Ally Lending is available for purchases in categories such as home furnishings, jewelry and sporting goods. Shoppers using the Sezzle platform, which serves thousands of retailers, will see “financed by Ally” during checkout when an installment payment plan is available from Ally Lending.
“We’re on a mission to financially empower the next generation,” said Charlie Youakim, executive chairman and CEO of Sezzle. “With Ally Lending’s personalized, flexible financing solutions now available on our platform, we’re able to offer even more options for consumers to budget their purchases and responsibly pay for what they want and need.”
To learn more, please visit allylending.com.
Sources:
1Digital Commerce 360, “Charts: How the coronavirus is changing ecommerce,” Feb. 15, 2021.
2Logica, “The Future of Money 2020,” “The Consumer Money Mindset in the Time of COVID-19, 2020.”
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