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Block (SQ) Launches Afterpay in Canada, Boosts BNPL Efforts

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Block (SQ - Free Report) has been working toward expanding its presence in the booming global buy now, pay later (BNPL) market.

Recently, the company launched Square’s first integration with Afterpay in Canada, which testifies the aforesaid fact.

The Afterpay BNPL service is available to sellers using Square e-commerce products like Square Online store and Square Online Checkout.

The sellers can now offer BNPL services to their customer seamlessly by accessing Afterpay from Account & Settings on their Square Dashboard.

With the latest move, Block strives to aid the sellers to expand their customer reach and grow their businesses.

This, in turn, is expected to drive Block’s seller momentum in Canada. The move makes Block well-positioned to capitalize on the growth prospects in the Canada BNPL market.

Per a report by Research and Market, BNPL payments are likely to hit $5.9 billion in Canada this year and exhibit annual growth of 63.5%.

The adoption of BNPL payments is expected to see a CAGR of 36.1% between 2022 and 2028.

Block, Inc. Price and Consensus


Block, Inc. Price and Consensus

Block, Inc. price-consensus-chart | Block, Inc. Quote

Growing Initiatives

Post the Afterpay acquisition, Square’s integration with Afterpay was only available in the United States and Australia. Hence, the latest move marks further expansion of the integrated service.

Afterpay recently teamed up with Sephora, an omni retailer for beauty products, in a bid to offer the BNPL service to the latter’s customers. Sephora shoppers in the United States enjoy the flexibility of payment in 4 installments for their purchases using the Afterpay app.

Block plans to introduce Afterpay’s BNPL service to Sephora shoppers in Canada later this year.

Afterpay partnered with trusted care retailer Rite Aid to offer the flexibility of paying for everyday items in four installments to the latter’s online customers.

Afterpay teamed up with Hypebeast to offer the flexibility of payment in four installments to shoppers on the latter’s global e-commerce platform — HBX.

Apart from expansion efforts in the United States, Canada and Australia, Square recently unveiled its integration with Clearpay (known as Afterpay outside of the U.K. and Europe) in the U.K.

Competitive Scenario

With the above-mentioned endeavors, Block, which currently carries a Zacks Rank #3 (Hold), aims to cater to the increasing demand for BNPL services.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

According to a Fortune Business Insights report, the global BNPL market is expected to hit $22.86 billion in 2022 and likely to reach $90.51 billion by 2029, witnessing a CAGR of 21.7% between 2022 and 2029.

Block’s growing prospects in the booming market are likely to instill investor optimism in the stock.

Notably, Block has lost 65.2% on a year-to-date basis compared with the industry’s decline of 48.9%.

The company’s robust BNPL efforts are expected to aid Block in strengthening its competitive position against players like PayPal (PYPL - Free Report) , Affirm (AFRM - Free Report) and VISA (V - Free Report) , which are making strong efforts to bolster their presence in the rapidly growing BNPL market.

PayPal is witnessing the solid adoption of its BNPL solution — Pay in 4. The company recently unveiled PayPal Pay Monthly, allowing customers to break the total costs of their purchased items into monthly payments over 6-24 months without any late fee.

PayPal’s acquisition of Paidy, a Japan-based BNPL solution provider, remains noteworthy.

Affirm is riding on its strategic partnerships. Its collaboration with Amazon to provide installment payment services to shoppers on the latter’s platform remains noteworthy. Affirm’s partnership with Shopify is another positive.

Affirm, with its partnership with Peloton, made its foray into Australia, which, in turn, strengthened its presence in the Asia Pacific region.

Meanwhile, VISA provides a BNPL service called Visa Installments, including three installment models — Pre-Purchase, During Purchase and Post-Purchase, to help customers with flexible payments.

VISA offers its BNPL solution in countries like the United States, Canada, Russia, Australia and Malaysia.

In-Depth Zacks Research for the Tickers Above

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Visa Inc. (V) - free report >>

PayPal Holdings, Inc. (PYPL) - free report >>

Block, Inc. (SQ) - free report >>

Affirm Holdings, Inc. (AFRM) - free report >>

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