Sezzle experienced a successful holiday season, marking its fourth quarter as the peak for transaction volume. The company emphasizes a distinct approach to consumer spending compared to traditional credit cards. Unlike credit cards, Sezzle restricts customers from making further purchases if they fail to make a payment, aiming to prevent overspending during the holiday season. This strategy not only safeguards the company from financial risks associated with short-term lending but also encourages responsible spending among consumers. Sezzle actively monitors customer spending limits, especially during the holidays, to mitigate the risk of defaults. By prioritizing repayment and maintaining a high frequency of transactions, Sezzle positions itself as a preferred option for consumers who want to avoid the pitfalls of credit card debt. The company is also focused on capturing more market share by promoting its responsible lending practices and the benefits of its buy-now-pay-later model.
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