COBALT advised a US-based “buy now, pay later” unicorn Sezzle on acquiring an EMI licence in Lithuania

COBALT advised a US-based “buy now, pay later” unicorn Sezzle Inc. in acquiring an electronic money institution (EMI) licence in Lithuania, granting the right to authorize electronic money and to provide payment services specified in the Law on Payments in Lithuania. The licence of the EMI was issued by the Bank of Lithuania.

Sezzle Lithuania, UAB will expand the US-based Sezzle Inc. activities in Europe. This institution intends to provide electronic money and payment services to merchants offering their goods on the Sezzle platform and buyers. These institutions are 100% owned directly by the Dutch holding company Sezzle Holdings III B.V., which is owned by Sezzle Inc.

Sezzle brought a unique “buy now, pay later” business model that required navigating through consumer crediting and payment services and coming up with the legal structuring that was acceptable to the regulator and complied with legal requirements.

COBALT advised Sezzle Inc. on receiving the electronic money institution licence in Lithuania and passporting of the same model to the other member states to expand Sezzle’s operation European-wide, including drafting all required licence application documents, communicating with the supervisory authorities, receiving required permits, and overall project management. The team consisted of Partner and Co-Head of the Banking & Finance Practice Group Akvilė Bosaitė, Associates Robertas Grabys and Andra Gavėdaitė.