Sezzle, a buy now, pay later provider, has submitted an application to the Office of the Comptroller of the Currency (OCC) for a national bank charter. The announcement was made on Thursday in a press release from the company.
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If approved, the charter would enable Sezzle to offer a variety of banking products, including checking and savings accounts. The company aims to cater to "digitally native consumers" who prefer alternatives to traditional credit products.
Sezzle's CEO, Charlie Youakim, emphasized that pursuing a national bank charter demonstrates the company's dedication to maintaining high standards of federal oversight. Should the charter be granted, it will allow Sezzle to expand its offerings to customers who favor buy now, pay later options and digital banking.
The move comes as multiple fintech companies have sought OCC charters under the Trump administration. Sezzle's application marks a shift from its initial plan to acquire a license from Utah regulators to become an industrial loan company (ILC). New regulations in states like New York, Illinois, and Oregon, combined with concerns raised by banks and consumer advocacy groups regarding the ILC framework, prompted Sezzle to alter its plans.
The review process for the application by the OCC, along with the Federal Reserve and Federal Deposit Insurance Corporation (FDIC), is projected to take between 12 to 18 months. Sezzle, based in Minneapolis, has carved a niche within the younger and lower-income demographic with limited or no credit histories. Analyst Hoang Nguyen noted that Sezzle's decision to pursue the OCC charter is a prudent choice given the increasing scrutiny from state regulators and the possibility of stricter lending regulations.
In comparison, earlier this year, BNPL competitor Affirm Holdings applied in Nevada to function as an industrial loan company, while PayPal sought a similar license from Utah's Department of Financial Institutions in December 2025.