Sezzle, the buy now, pay later company, wants to become a national bank. Approval is likely more than a year away, but it could change how apps like it are overseen.
Sezzle, a buy now, pay later company, has applied to become a national bank. It is asking the Office of the Comptroller of the Currency, a federal bank regulator, for a charter, which is a license to operate as a bank. Regulators expect the review to take 12 to 18 months, the company's CEO said.
Sezzle first planned to seek a license from Utah regulators to become an industrial loan company. That is a state-level route to running a bank-like lender. The company changed course because of new buy now, pay later rules in states such as New York, Illinois and Oregon. Banks and consumer groups had also criticized the industrial loan structure. CEO Youakim described the reasons in an August interview.
An analyst at TD Cowen, Hoang Nguyen, called the move "a smart move." He pointed to state regulators' focus on the industry and the chance of tighter lending rules.
Sezzle is based in Minneapolis. The analyst said it serves younger and low-income shoppers with thin or no credit histories. Those customers could feel any change in how the company is overseen.
Sezzle is not alone. Block, Ramp, Avant and Modern Treasury have also sought OCC charters in recent months. Ramp applied last week. Rival Affirm applied in Nevada for an industrial loan license, and PayPal sought one from Utah in December 2025.
The material does not say how a charter would change fees, approvals or the Sezzle app. Approval is not guaranteed. For now, nothing changes for people who use Sezzle.
Sezzle's bank application is a long process, so expect no change for users soon, but watch for shifts in oversight of buy now, pay later apps.
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