Pagaya Technologies Ltd. (NASDAQ: PGY) announced a partnership with Sezzle (NASDAQ: SEZL) to integrate Pagaya's AI underwriting platform into Sezzle's point-of-sale payment system. The collaboration will allow Sezzle customers to access installment loan products issued by WebBank through Pagaya's technology.

Under the partnership, Sezzle will embed Pagaya's AI-driven decisioning tools alongside its existing payment platform. This integration aims to provide qualified borrowers with access to longer-term financing options while maintaining the existing Sezzle customer experience. Merchants using Sezzle payments are expected to see higher approval rates and larger transaction values.

"This partnership allows Sezzle long-term lending customers to access greater spending power, while keeping the experience simple, transparent, and entirely within the Sezzle ecosystem," said Amin Sabzivand, Chief Operating Officer of Sezzle.

Pagaya's technology provides simultaneous decisioning capabilities designed to offer consumers higher spending limits and extended financing terms. The company's platform integrates with partner systems to deliver what it describes as seamless user experiences.

"By embedding Pagaya's AI-powered underwriting platform alongside Sezzle's existing decisioning, we can responsibly extend higher spending capacity and more flexible financing options without adding friction for shoppers or merchants," said Sanjiv Das, co-founder and President of Pagaya.

The partnership positions Pagaya as a personal loan provider integrated into partner platforms, allowing both companies to target enterprise-level merchants. Sezzle joins other bank and non-bank partners working with Pagaya to provide financial services through AI models and real-time decisioning capabilities.

The information is based on a company press release statement.