As part of its strategy to become a full-service payments provider and serve a wider consumer base, the provider Sezzle Inc. announced a partnership with Alliance Data Systems Corp. on Monday. known to offer Alliance Data’s Bread installment loan service to Sezzle merchants.

The partnership builds on a deal Sezzle signed earlier this year with Ally Financial, the personal loans division of Ally Bank, to allow Sezzle buyers to use Ally to fund purchases up to $ 40,000 with monthly fixed-rate installment loans for to be used for up to 60 months.

The deal with Alliance Data will provide Sezzle users with a payment option that will allow them to finance the purchase of expensive items such as jewelry, furniture and electronics at a low interest rate over a period of three to 48 months. The interest rates for bread loans for qualified customers start at 0% for certain loans.

One advantage of installment loans is that they are better at financing large purchases, as consumers pay a fixed amount of several hundred dollars per month for the life of the loan, compared to $ 50 every two weeks for up to three months, for example. Bread that was acquired from Alliance Data at the end of 2020, the loans will be granted through its subsidiary Comenity Capital Bank.

“Large purchases of several thousand dollars are not a good way to buy now and pay for loans later,” said Rob Seidman, vice president of product and long-term solutions at Sezzle. “With bread, consumers have a longer period of time to repay the loan.”

The addition of Bread is expected to make Sezzle more attractive to merchants as well, as Sezzle can now offer consumers one more payment option. “This partnership allows us to serve a wider range of merchants, especially wholesalers, and gives consumers the ability to pay over a longer period of time than a BNPL loan,” says Seidman. “The addition of Bread completes our product range and positions us to become a full-service payment company.”

Sezzle has more than 40,000 dealers in its portfolio.

“We approach our products and experiences from a consumer perspective, and this alliance speaks not only of the strength of Bread’s installment product, but also of its advanced technology and straightforward, user-friendly experience,” said Val Greer, executive vice president and chief commercial officer for Alliance Data, in a prepared statement. “This agreement allows Bread and Sezzle to expand their reach and develop mutual growth while giving more merchants the tools to succeed by targeting a variety of customers and basket sizes.”