Sezzle Sues Shopify Over BNPL Offering

In a recent legal action, Sezzle, a BNPL (Buy Now, Pay Later) company, has filed a federal lawsuit against Shopify. The claim is that Shopify harmed Sezzle’s business by favoring its own BNPL offerings over those of third-party providers like Sezzle since 2021 and potentially breaching antitrust laws.

According to the lawsuit, which was submitted on June 16, 2025, in the US District Court for the District of Minnesota, Sezzle alleges that Shopify utilized its market power by making its own BNPL solutions the default provider on merchant websites. Additionally, Shopify allegedly manipulated the checkout process to discourage users from selecting alternative BNPL options and imposed fees on merchants who use third-party payment platforms like Sezzle.

Sezzle’s Allegations Against Shopify

Sezzle contends that these actions have systematically harmed its business with Shopify merchants, allowed Shopify to dominate the market, and diminished the variety of BNPL options available to both businesses and consumers. The lawsuit seeks an injunction and financial compensation.

The filing also mentions that before Shopify introduced its own BNPL product in 2021, the total transaction value on Shopify platforms through Sezzle saw a massive increase—rising by 1,200% from January 2019 to June 2021. The number of merchants using Sezzle tripled during this period.

However, by 2023, after Shopify began imposing penalties on every transaction processed through third-party providers like Sezzle—ranging from 1% to 2%—Sezzle’s business with these merchants decreased by half. This development is detailed in a press release issued by Sezzle.

Sezzle’s Commitment

In its statement, Sezzle emphasized that the lawsuit aims to ensure that both merchants and consumers have access to various payment solutions of their choice. The company also reaffirmed its commitment to fostering a competitive, transparent, and consumer-friendly payment ecosystem.