Sezzle Sues Shopify For AntiCompetitive Practices

eCommerce
Written By Rick Watson

The website PYMNTS reports that Shopify has been sued for anti-competitive practices by a Buy Now Pay Later provider Sezzle. The report claims that Shopify is limiting competition by choosing winners in its payments network.

To be clear, Sezzle is a payments app on Shopify, but it is not allowed in Shop Pay which is kind of the crown jewel of Shopify. Instead, Shop Pay Installments is powered by a single provider Affirm.

No doubt that this lawsuit isn’t about really taking down Shopify, it’s more about getting some kind of settlement. (Sezzlement?) Imagine a world where you could choose your own Buy Now Pay Later provider within Shop Pay rather than being limited by Shopify’s options, and you have some idea of the type of settlement that Sezzle is likely after.

I suspect many payment providers, Adyen and Paypal chief among them, might be watching this lawsuit very closely.

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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