Sezzle Inc. and Pagaya Technologies Ltd. announced a partnership on May 5 2026 that will embed Pagaya’s AI‑driven underwriting platform directly into Sezzle’s point‑of‑sale system, allowing merchants to offer installment loan products to more qualified borrowers with real‑time approval decisions.
The new integration will let Sezzle’s merchants issue loans through WebBank while the AI model evaluates credit risk and sets loan terms instantly during checkout, reducing Sezzle’s underwriting burden and enabling a broader range of loan offerings without increasing its own risk exposure.
For Sezzle, the deal expands its consumer loan portfolio and is expected to boost conversion rates for merchants that currently rely on Sezzle’s standard installment offerings. The partnership also positions Sezzle to capture additional revenue from consumer fees associated with the new loan products while maintaining its low‑cost, short‑duration loan model.
Pagaya benefits by extending its AI underwriting reach to Sezzle’s extensive merchant network, generating fee income from a new customer base and reinforcing its strategy of embedding risk analytics into fintech platforms.
"This partnership allows Sezzle long‑term lending customers to access greater spending power, while keeping the experience simple, transparent, and entirely within the Sezzle ecosystem," said Amin Sabzivand, Chief Operating Officer of Sezzle. "By integrating Pagaya's decisioning tools alongside our core product, we're giving shoppers more choice at checkout and helping merchants unlock higher‑value transactions without added complexity."
"By embedding Pagaya's AI‑powered underwriting platform alongside Sezzle's existing decisioning, we can responsibly extend higher spending capacity and more flexible financing options without adding friction for shoppers or merchants," added Sanjiv Das, co‑founder and President of Pagaya. The partnership is slated to begin implementation in the coming weeks.
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