Sezzle announced that it has changed its company charter, becoming a Public Benefit Corporation (PBC.) The designation enables the company to become the first PBC in the burgeoning “Buy Now, Pay Later” (BNPL) payments space.
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Following stockholder approval earlier this month, the company has completed the necessary filing requirements and has formally transitioned into a PBC. The new status compels the company’s leadership to manage against the aligned goals of creating a positive impact on the community at large and serving the public good in addition to maximizing profit for shareholders.
A PBC is a specific type of corporate structure that allows for governance and management decisions to hold a purpose beyond maximizing value for shareholders; a PBC is a legal designation that requires businesses to do right by all stakeholders, requiring company management and its board to lead the company in a way that will contribute to a general public benefit, in addition to seeking a financial return for investors.
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Sezzle’s management team and fiduciary board strongly believe that the company’s long-standing commitment to financial education and helping young adults with their approach to personal finances, as well as creating alternative means for consumers to purchase items they need without incurring high-interest finance charges, benefit the community and serve as a public good.
“Becoming a PBC cements our company’s ethos — ‘to financially empower the next generation’ — into our governance structure,” commented Charlie Youakim, CEO and co-Founder of Sezzle. “Young consumers across the globe are looking for long-term, trusted partners in their financial journeys. The PBC designation strengthens our positioning as the marquee mission-driven payments platform in North America. It shows that we are not just paying ‘lip service’ to the business’s mission side — we are ‘walking the walk.'”
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