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Block's Cash App Adds Afterpay BNPL: Will This Drive User Engagement?
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Key Takeaways
Block launched Afterpay on Cash App Card, adding BNPL for eligible everyday purchases.
Block targets earners with variable incomes via a 7.5% fee and a six-week repayment plan.
Block deepens Cash App-Afterpay integration to boost flexible payments and engagement.
Block (XYZ - Free Report) recently announced the launch of Afterpay on Cash App Card, bringing eligible Cash App card customers under the sphere of Buy Now, Pay Later (“BNPL”). This arrangement has been designed for American earners with variable incomes and who are underserved by the current financial system.
The new feature enables gig workers, creators, hourly employees and independent contractors to spread the cost of everyday purchases, including groceries, gas, dining and utility bills over time, providing greater short-term financial flexibility.
Leveraging Cash App’s insights into users’ cash flow patterns and financial behavior, Afterpay offers transparent repayment terms, including a flat 7.5% finance fee and a six-week repayment schedule. The service is now available to all Cash App Card customers across Cash App’s 59 million monthly transacting active users.
The launch builds on the growing integration between Cash App and Afterpay. Recent enhancements include the expansion of the Pay Monthly option, which provides longer-term installment plans for larger purchases at merchant checkout. Cash App customers can also convert eligible peer-to-peer payments and Cash App Pay transactions into installment plans after completing a transaction, expanding access to flexible payment solutions.
The rollout of Afterpay on Cash App Card underscores Block’s strategy to deepen customer engagement by broadening access to flexible credit products. By addressing the needs of consumers with variable incomes and integrating BNPL options into everyday spending, Cash App is strengthening its position as a comprehensive financial ecosystem while creating additional opportunities for user growth and monetization.
How Are Cash App’s Competitors Fairing?
Affirm (AFRM - Free Report) is a leading competitor to Cash App’s BNPL offering, largely because it is widely used by online and in-store merchants. It gives shoppers flexible installment plans, including short-term pay-in-four options and longer monthly financing. Affirm’s focus on transparent payment schedules and no hidden fees makes it a strong alternative for customers seeking predictable credit at checkout.
Klarna Group plc (KLAR - Free Report) is another major BNPL rival, competing directly with Afterpay/Cash App in retail payments. It offers pay later, pay-in-four and financing options across many merchants. Klarna also emphasizes shopping discovery, rewards and app-based deals, making it more than just a payment provider.
XYZ’s Price Performance, Valuation & Estimates
Shares of Block have risen 16.1% over the past year, outperforming the broader industry but underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.22X, which is at a discount to the Zacks Internet Software industry’s 28.82X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward by a cent over the past week to $3.86. It indicates a significant increase year over year.
View the Zacks #1 Rank List
Image: Bigstock
Block's Cash App Adds Afterpay BNPL: Will This Drive User Engagement?
Key Takeaways
Block (XYZ - Free Report) recently announced the launch of Afterpay on Cash App Card, bringing eligible Cash App card customers under the sphere of Buy Now, Pay Later (“BNPL”). This arrangement has been designed for American earners with variable incomes and who are underserved by the current financial system.
The new feature enables gig workers, creators, hourly employees and independent contractors to spread the cost of everyday purchases, including groceries, gas, dining and utility bills over time, providing greater short-term financial flexibility.
Leveraging Cash App’s insights into users’ cash flow patterns and financial behavior, Afterpay offers transparent repayment terms, including a flat 7.5% finance fee and a six-week repayment schedule. The service is now available to all Cash App Card customers across Cash App’s 59 million monthly transacting active users.
The launch builds on the growing integration between Cash App and Afterpay. Recent enhancements include the expansion of the Pay Monthly option, which provides longer-term installment plans for larger purchases at merchant checkout. Cash App customers can also convert eligible peer-to-peer payments and Cash App Pay transactions into installment plans after completing a transaction, expanding access to flexible payment solutions.
The rollout of Afterpay on Cash App Card underscores Block’s strategy to deepen customer engagement by broadening access to flexible credit products. By addressing the needs of consumers with variable incomes and integrating BNPL options into everyday spending, Cash App is strengthening its position as a comprehensive financial ecosystem while creating additional opportunities for user growth and monetization.
How Are Cash App’s Competitors Fairing?
Affirm (AFRM - Free Report) is a leading competitor to Cash App’s BNPL offering, largely because it is widely used by online and in-store merchants. It gives shoppers flexible installment plans, including short-term pay-in-four options and longer monthly financing. Affirm’s focus on transparent payment schedules and no hidden fees makes it a strong alternative for customers seeking predictable credit at checkout.
Klarna Group plc (KLAR - Free Report) is another major BNPL rival, competing directly with Afterpay/Cash App in retail payments. It offers pay later, pay-in-four and financing options across many merchants. Klarna also emphasizes shopping discovery, rewards and app-based deals, making it more than just a payment provider.
XYZ’s Price Performance, Valuation & Estimates
Shares of Block have risen 16.1% over the past year, outperforming the broader industry but underperforming the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, XYZ stock is trading at 17.22X, which is at a discount to the Zacks Internet Software industry’s 28.82X.
Image Source: Zacks Investment Research
Block’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised northward by a cent over the past week to $3.86. It indicates a significant increase year over year.
Image Source: Zacks Investment Research
Block currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.