Sezzle Lawsuit Accuses Shopify of Stifling BNPL Options

Core Viewpoint - Sezzle has filed an antitrust lawsuit against Shopify, accusing it of monopolistic practices that limit competition for buy now, pay later (BNPL) options on its platform [2][3] Group 1: Lawsuit Details - The lawsuit was filed in the U.S. District Court for the District of Minnesota, seeking an injunction to prevent Shopify from continuing its alleged anticompetitive conduct [2] - Sezzle is requesting treble damages, which means damages three times the amount awarded by a jury [2] Group 2: Company Statements - Sezzle's Chairman and CEO, Charlie Youakim, emphasized the company's commitment to a competitive and consumer-friendly payments ecosystem, stating that the lawsuit is crucial for ensuring access to diverse payment solutions [3] - For the first quarter of the year, revenue from Shopify's platform accounted for less than 5% of Sezzle's total revenue [3] Group 3: Industry Context - Research indicates that 128 million Americans used a pay-later product from alternative credit providers in the past year, with total American BNPL transactions reaching $175 billion [5] - The BNPL market is evolving, with providers like Klarna, Affirm, and Sezzle expanding their business models beyond the traditional 'pay in 4' structure [6] - A significant portion of younger consumers, specifically 46% of Gen Z and 47% of millennials, have utilized BNPL in the past year, highlighting its growing popularity [7]