Sezzle Send Launch: Can P2P Virality Drive Low-Cost Growth?

Sezzle Inc. SEZL is pushing beyond checkout financing with Sezzle Send, a peer-to-peer money transfer product scheduled for an August launch. Users can send money by phone number and choose Pay-in-Full or Pay-in-5, while recipients receive the full amount upfront. Management sees each transfer as a potential introduction to Sezzle, broadening its role in everyday financial activity.

The growth angle is clear. Sezzle said more than 100,000 users had already joined the Send waitlist. This is because recipients do not need to be existing Sezzle users, the product could create a low-cost acquisition channel driven by customers themselves. Anywhere subscribers also avoid the Pay-in-5 service fee, which could support subscriber conversion.

That matters because Sezzle already has strong customer momentum. Active subscribers reached 854,000 in the second quarter, up 76.4% year over year, while average quarterly purchase frequency rose to a record 7.2 times from 6.1 times. MODS increased 31.3% to 982,000, giving Send a broader potential customer reach.

Sezzle also has room to test the economics. Second-quarter revenues rose 51.7% to $149.7 million, GMV increased 37.9% to $1.3 billion and net income reached $40.8 million. Marketing spend climbed to $19.4 million, yet management said customer acquisition payback remained under six months.

Still, Send is not yet reflected into the financial outlook. Management said 2026 guidance assumes zero contribution from Sezzle Send and little impact from SezzleCash. Sezzle expects 35% revenue growth for the year, adjusted net income of $185 million and adjusted earnings per share (EPS) of $5.25, leaving upside dependent on adoption.

How Are Others Faring in the Payments Space?

Klarna Group plc KLAR launched instant peer-to-peer payments across 13 European countries in January 2026, allowing users to send money to friends and family using phone numbers, emails, QR codes or saved contacts. The feature expands Klarna beyond BNPL toward everyday digital banking and initially supports transfers between Klarna users.

Block’s XYZ Cash App expanded pay-over-time financing beyond merchant checkout in April 2026, allowing eligible customers to convert recent peer-to-peer transfers to friends and family into short-term installment plans. The feature extends pay-over-time flexibility to everyday money movement, with P2P transfers of $25 or more made within the previous 30 days qualifying for the plan.

SEZL’s Price Performance, Valuation & Estimates

Shares of Sezzle have outperformed in the past six months compared with the broader industry and the S&P 500 Index.

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From a valuation standpoint, Sezzle’s shares have a Value Score of D. In terms of forward 12-month P/E, SEZL stock is trading at 20.12X, which is at a premium to the Zacks Financial Transaction Services Market industry’s 19.62X.

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Sezzle’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.24 in the past month. The consensus estimate for the metric indicates a year-over-year increase of 45.96%.

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Sezzle currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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