Sezzle vs Shopify: BNPL Lawsuit Explained
- Sezzle, a buy now, pay later (BNPL) platform, has initiated an antitrust lawsuit against Shopify, alleging the eCommerce giant is stifling competition.
- The complaint accuses Shopify of monopolistic and anticompetitive actions aimed at limiting buy now,pay later (BNPL) options available on its platform.Sezzle is seeking an injunction to halt Shopify's...
- According to the release, revenue from gross merchandise volume attributable to Shopify's platform accounted for less than 5% of Sezzle’s total revenue in the first quarter.
Sezzle, a prominent buy now, pay later (BNPL) platform, is suing Shopify in an antitrust case, alleging anti-competitive practices. The lawsuit, filed on Monday, contends that Shopify is hindering competition within the BNPL market. Sezzle seeks an injunction and damages, arguing Shopify’s actions limit consumer choice. The legal action comes amid growing BNPL usage, with critically important adoption among younger demographics. Revenue from Shopify represented a small percentage of Sezzle’s total.News Directory 3 is covering this rapidly developing story. As the case unfolds in the U.S. District Court, discover what’s next in this high-stakes battle shaping the future of e-commerce and the buy now, pay later industry.
Sezzle Sues shopify Over Buy Now, Pay Later Competition
Updated June 09, 2025
Sezzle, a buy now, pay later (BNPL) platform, has initiated an antitrust lawsuit against Shopify, alleging the eCommerce giant is stifling competition. The suit was filed Monday in U.S. District Court for the District of Minnesota.
The complaint accuses Shopify of monopolistic and anticompetitive actions aimed at limiting buy now,pay later (BNPL) options available on its platform.Sezzle is seeking an injunction to halt Shopify’s alleged behavior and is also requesting treble damages, according to a news release.
According to the release, revenue from gross merchandise volume attributable to Shopify’s platform accounted for less than 5% of Sezzle’s total revenue in the first quarter.
The lawsuit comes as buy now, pay later options gain traction. research indicates a notable portion of consumers now utilize buy now, pay later services, with transactions totaling $175 billion. PYMNTS data shows that 46% of Gen Z and 47% of millennials have used BNPL in the past year.
“Sezzle remains committed to fostering a competitive, clear, and consumer-friendly payments ecosystem,” said Charlie Youakim, Sezzle chairman and CEO.
“This action is an significant step in ensuring that merchants and consumers have access to diverse and innovative payment solutions of their choice,” Youakim added.
What’s next
Shopify has yet to respond to requests for comment. The case will proceed in the U.S. District Court for the District of Minnesota.