An article from
Dive Brief
The buy now, pay later provider wants a U.S. charter from the Office of the Comptroller of the Currency amid new state rules.
Published Oct. 23, 2026
Dive Brief:
- Buy now, pay later company Sezzle has applied for a national trust bank charter with the Office of the Comptroller of the Currency, the company said Thursday in a press release.
- If the OCC approves the request, Sezzle’s new bank would offer “a broad range of banking products and services,” including checking and savings accounts, Sezzle said in the release. The company said it aims to target the bank towards “digitally native consumers” who eschew traditional credit products.
- “Applying for a national bank charter reflects our commitment to operating under the highest standards of federal oversight,” Sezzle Chief Executive Charlie Youakim said in the press release. If granted, the charter would let Sezzle “offer a broader set of banking products to people who prefer BNPL and digitally native banking products,” under federal supervision, he added.
Dive Insight:
Under the Trump administration, multiple financial technology companies have rushed to apply for OCC charters this year. Block, Ramp, Avant and Modern Treasury are among the fintechs that have sought OCC charters in recent months; Ramp applied last week.
The national bank charter application represents a pivot from Sezzle’s initial plan to seek a license from Utah regulators to become an industrial loan company.
New BNPL regulations in states such as New York, Illinois and Oregon – along with criticisms from banks and consumer groups about the ILC structure – prompted Sezzle’s change of course from its earlier plan for the Utah license, Youakim said in an August interview.
The review process by the OCC, the Federal Reserve and Federal Deposit Insurance Corp. is expected to take 12 to 18 months, Youakim said.
Minneapolis-based Sezzle has established a niche business among younger and low-income consumers with thin, or zero, credit histories, TD Cowen analyst Hoang Nguyen said in an August interview.
Nguyen called Sezzle’s decision to seek the OCC charter instead of the state-level ILC “a smart move” given state regulators’ focus on the industry and the potential for tighter lending rules after the Trump administration.
Earlier this year, BNPL rival Affirm Holdings applied in Nevada to operate a bank as an industrial loan company. PayPal Holdings sought a similar license from Utah’s Department of Financial Institutions in December 2025.