Buy Now, Pay Later provider Sezzle has applied to the OCC for a national bank charter to offer current and savings accounts.
US-based Buy Now, Pay Later (BNPL) provider Sezzle has applied to the Office of the Comptroller of the Currency (OCC) for a national bank charter. If approved, the new bank would offer a broad range of banking products and services, including current and savings accounts. Sezzle plans to target the bank at digitally native consumers who avoid traditional credit products.
A shift from the industrial loan company route
The application marks a change from Sezzle’s earlier plan to seek a licence from Utah regulators to operate as an industrial loan company (ILC). The move comes as states including New York, Illinois, and Oregon introduce new rules for BNPL providers, and as banks and consumer groups have criticised the ILC structure.
Charlie Youakim, CEO of Sezzle, stated that the application reflects the company’s commitment to operating under federal oversight. According to Youakim, a charter would allow Sezzle to offer a broader set of banking products, under federal supervision, to people who prefer BNPL and digital banking products.
Fintechs seek bank charters
Sezzle’s application comes as a growing number of fintechs seek bank charters from the OCC under the current US administration. In 2026, companies including Block, Ramp, Avant, and Modern Treasury have applied for OCC charters, bringing more fintechs directly under federal banking supervision as they expand into deposit-taking and other banking services.
Other lenders have taken the state route instead. Affirm has applied in Nevada to operate a bank as an industrial loan company, while PayPal sought a similar licence from Utah’s Department of Financial Institutions in December 2025. Consumer lending platform Upgrade has also applied to Nevada regulators and the FDIC to establish an industrial loan bank. By pursuing a national charter, Sezzle would come under federal rather than state banking supervision, setting it apart from these peers.
