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SAN FRANCISCO - Block, Inc. (NYSE: XYZ), the parent company of Cash App and Afterpay and a prominent player in the Financial Services industry with a market capitalization of $35.49 billion, has announced the launch of a merged brand, Cash App Afterpay, which will offer expanded payment options to its users. According to InvestingPro analysis, the company appears undervalued at current levels, suggesting potential upside for investors. Starting this week, eligible Cash App customers will gain access to Afterpay’s Pay Over Time products at partner merchant sites, with plans to introduce Pay Monthly in the upcoming months. The company’s strong financial position, evidenced by a healthy current ratio of 2.33 and solid revenue growth of 10.06% over the last twelve months, supports this expansion.
The integration marks a significant move in the financial technology sector, as it combines the reach of Cash App’s 57 million monthly active users with Afterpay’s trusted Buy Now, Pay Later (BNPL) services. Nick Molnar, Global Head of Sales at Block and Co-founder of Afterpay, emphasized the benefits to both merchants and customers, citing the potential for increased access to simple and accessible payment options.
The new branding aims to reflect the synergy between the two services, offering a seamless checkout experience. Customers shopping online can select the $Afterpay option to make purchases over time. This feature is now available to eligible new Cash App users and will be managed directly within the Cash App through an applet feature. Existing Afterpay users will continue to experience the service as before, now under the Cash App Afterpay branding.
Cash App, known for its financial services platform that includes direct deposit, a Visa debit card, and the ability to trade stocks and cryptocurrencies, was recognized among the top five most authentic brands to Generation Z. Afterpay, on the other hand, was acknowledged as the most trusted BNPL provider, according to recent reports.
The collaboration between Cash App and Afterpay is expected to not only drive growth for Cash App but also to contribute to the increasing preference for BNPL options in the United States. This move is based on a press release statement and aims to provide a fair and balanced perspective on the new offerings by Cash App Afterpay. For deeper insights into Block’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports and expert commentary on over 1,400 US stocks.
In other recent news, Block Inc. has announced that its subsidiary, Square Financial Services, received approval from the Federal Deposit Insurance Corporation to offer the Cash App Borrow feature, which provides consumer loans across the United States. The product is designed to offer short-term loans with an average size below $100, aiming to be more manageable than traditional payday loans. In 2024, Cash App Borrow saw nearly $9 billion in originations, maintaining a historic loss rate under 3%. Meanwhile, BTIG maintained a Sell rating on Block with a price target of $110, acknowledging the potential benefits of Square Financial Services but expressing caution regarding the stock’s current valuation. Citi adjusted its outlook, reducing Block’s price target to $90 while maintaining a Buy rating, citing changes in top-line growth expectations and margin forecasts. Additionally, Morgan Stanley upgraded Block’s stock rating to Equalweight with a new price target of $65, reflecting a reassessment of the company’s valuation and growth potential. In another development, Block will be the first in North America to deploy NVIDIA’s DGX SuperPOD for advancing its generative AI research, reinforcing its commitment to open-source innovation.
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