The buy now, pay later provider wants a U.S. charter from the Office of the Comptroller of the Currency amid new state rules.

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 .

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