Target has partnered with Sezzle to test the installments payments platform in two categories and with a limited number of customers. It is a small test, but with the popularity of buy now pay later growing, it makes sense for major retailers like Target to explore the option.
According to PYMNTS, millennials and members of Generation Z spent 44% and 72% more when buy now pay later was an option. The coronavirus pandemic has ushered in a time of economic stress and uncertainty, and the flexibility of buy now pay later is appealing to consumers.
The release stresses that the pilot is only temporary for now, and doesn't mean there will be any permanent partnership going forward with Target.