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Sezzle share price flirts with new all-time lows. What is this BNPL company facing?

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The Sezzle Inc (ASX: SZL) share price has struggled through most of 2022 so far.

In fact, the buy now, pay later (BNPL) company’s shares hit a new all-time low earlier today. And the challenges seemingly facing the company haven’t let up yet.

At the time of writing, the Sezzle share price is 27.5 cents, 8.33% lower than its previous close.

Though, that’s an improvement on its earlier performance. The stock reached an intraday low of 25 cents today – the lowest point it has ever traded at.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.7% while the All Ordinaries Index (ASX: XAO) is recording a 1.69% gain.

Let’s take a look at the challenges facing the BNPL provider this year.

The Sezzle share price slumped to a new all-time low today. Its recent suffering has come amid rising inflation, interest rate hikes and increasing competition. This seems to have dinted its bottom line and likely impacted investors’ sentiment.

The company’s business has seemingly continued to grow in 2022. Though, so has its expenses.

Fellow BNPL provider Humm Group Ltd (ASX: HUM) recently told the market its consumer finance leg – housing its BNPL offering – has also struggled this year. The company’s chair Chair Christine Christian blamed its suffering on “intense competition, rising interest rates, and weakening consumer sentiment”.

Speaking of competition, yet another new entrant is set to make its way on the BNPL scene. Revolut announced late last week that it is planning to debut a BNPL offering in Ireland.

On top of that, Zip has flagged that its working to increase fees charged to customers in the face of the current inflationary environment.

Zip has, of course, offered to acquire Sezzle in an all-scrip deal that would see shareholders handed 0.98 Zip shares for every Sezzle stock they own.

Both BNPL shares have tumbled around 90% since the start of 2022. The Sezzle share price is also currently nearly 97% lower than it was this time last year.

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