Hubbry Logo
AfterpayAfterpayMain
Open search
Afterpay
Community hub
Afterpay
logo
7 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
Afterpay
Afterpay
Afterpay
View on Wikipedia
from Wikipedia

Afterpay Limited (abbreviated as Afterpay) is an Australian technology company and a buy now, pay later (BNPL) lender.[1][2] Founded in 2014 by Nick Molnar and Anthony Eisen, it is now owned by Block, Inc.[3] As of 2023, Afterpay serves 24 million users,[3][4] processes US$27.3 billion in annual payments,[5] and ranks among the three most-used BNPL services globally.[6]

Key Information

Afterpay offers unsecured installment loans allowing shoppers to make in-store or online purchases, and then repay with a fortnightly frequency. It does not charge fees or interest to the consumers, unless they miss scheduled repayments, and does not check or affect the credit scores. The company charges merchants for offering its service, requiring that the charge is not passed on to shoppers.[7][8] As of 2024, Afterpay operates as a subsidiary of Block, Inc., following an acquisition in 2021, and maintains presence in the U.S., Australia, Canada, France, Italy, New Zealand, Spain and the U.K.[7]

History

[edit]

2014–2017: Founding; initial years

[edit]

In April 2014, Molnar, a Sydney-based jewelry salesman at the time, partnered with a product manager and an engineering manager in Melbourne to design a financial product he had conceived. The concept targeted online retailers focused on sales growth and shoppers looking for a way to receive goods upfront while paying later. The resulting design offered two interest-free options for consumers, ensuring the product remained outside Australia’s credit regulations. The first, "Pay After Delivery", allowed users to wait 30 days before making a payment, similar to using a credit card. The second, "Pay Over Time", let users divide their bill into four installments over a maximum of 60 days.[9][10]

Later, in October 2014, Molnar and his neighbor, Eisen, formerly a chief investment officer at the Australian holding company Guinness Peat Group, co-founded Afterpay in their home in the suburb of Rose Bay, Sydney. They pursued the repayment option involving four interest-free installments. As the company grew, Molnar began encouraging consumers to contact their favorite retailers and request that they offer Afterpay, resulting in an effective social media campaign.[7][11][10]

On 4 May 2016, the company listed on the Australian Securities Exchange with an A$25 million IPO.[note a][12] According to the Sydney Morning Herald in August 2016, Afterpay was being used at more than 300 retailers and had signed up more than 100,000 shoppers, financing $20 million worth of purchases in the quarter ending June 2016. Afterpay generated income from charging retail merchants, not customers, and Molnar claimed that "many customers" paid back money early. At that time, the Consumer Action Law Centre, an Australian consumer advocacy organization, cautioned that although shoppers were not paying interest to the company, they might end up paying interest anyway.[13]

In March 2017, Molnar stated that Afterpay had 2600 retail merchants on its platform and that the company was growing its presence into the physical stores of its retail partners.[14] In October 2017, he said Afterpay had grown to serve more than one million customers and over 7000 retailers, adding "only 20 percent" of the company's revenue came from late fees, and "about 80 percent" came from retailers. Afterpay reportedly managed to avoid being subject to Australia's national credit code, because the lender didn't charge interest and offered short-term credit to be repaid in less than 62 days.[15]

2018–2019: U.S. and U.K. entry

[edit]

In January 2018, American venture capital fund Matrix Partners announced its intention to invest A$19.4 million in Afterpay to support its entry into the U.S. retail market. Afterpay was launched in the U.S. in mid-May 2018 with retailers such as Anthropologie, Free People, and Urban Outfitters.[16] In August 2018, Afterpay acquired 90 percent of the equity in "Clearpay", a U.K. based BNPL service, for a total consideration of one million Afterpay shares.[17][18][19]

With reported underlying sales of A$4.7 billion in the 11 months to May 2019, Afterpay raised A$317.2 million in fresh capital through a share issue in June 2019, in part to help fund its international growth.[12] Two months later, the company revealed that it had over two million active users and 6,500 merchants in the U.S. and announced a strategic partnership with Visa Inc.[20][21] In its 2019 financial year update, the company announced that its growth in the U.K. was faster than that of the U.S., with more than 200,000 U.K. customers joining in the first 15 weeks.[22][21] This year also saw former World Bank Chief Economist Larry Summers join Afterpay to advise it on its U.S. expansion.[10]

2020: Growth during COVID-19 pandemic

[edit]

On 21 May 2020, Afterpay announced that its operations had grown to five million active customers in the U.S.[23] During the COVID-19 pandemic, many retailers closed physical stores and potential customers were increasingly hesitant to shop in-person. The Australian Financial Review commented that the company's growth was spurred by "investors [who] are seeking exposure to e-commerce as the coronavirus crisis pushes more shopping online, and continuing government stimulus will keep bad debts low”.[24] In 2020, Afterpay unveiled plans to expand its services to at least four continents, including Asia, to capitalize on the online shopping surge brought by the COVID-19 pandemic.[25] This plan would entail the acquisition of Singapore-based, Indonesia-focused buy-now-pay-later service EmpatKali.[25] Over the eleven months following March 2020, Afterpay's share price rose from A$9 to A$160. This period also saw an investment of A$300 million, paid in May 2020, from the Chinese company Tencent in return for a 5 per cent equity stake in the lender. Afterpay had not delivered a profit or paid out any dividends by this time.[10]

2021–present: Acquisition by Block, Inc.; other updates

[edit]

By June 2021, Afterpay was available at nearly 100,000 merchants globally.[8] It was estimated that the company's average customer in Australia was 33 years old and eight of ten customers were women.[11] In August 2021, Afterpay and Block, Inc. (then named "Square, Inc."), announced that Afterpay would be acquired by Block. Square paid Afterpay A$39 billion (US$29 billion) in stock for the acquisition.[26][27][28][29] Afterpay said its underlying sales rose 90 per cent over the 2021 financial year, to A$21.1 billion and that the number of customers actively using the platform rose to 16.2 million, up from 9.9 million in June 2020. The lender operated in Australia, the U.S., Canada and New Zealand, as well as in the U.K., France, Italy and Spain as Clearpay by this time.[7] It was also reported that Molnar and Eisen would lead Afterpay's merchant and consumer businesses inside Block.[26] Shares of Afterpay, listed in Australia, closed higher after the acquisition news.[30] According to Yahoo Finance in October 2021, Afterpay was among the top two most popular BNPL services in the U.S.[31] In November 2021, Afterpay announced that they would launch BNPL for subscriptions, such as for gym memberships and entertainment subscriptions, to U.S. customers.[32]

On January 12, 2022, the Bank of Spain approved Block's takeover bid of Afterpay,[33] marking the final hurdle in the acquisition merger. On January 19, 2022, Afterpay suspended trading of its shares on the ASX.[34] On January 20, 2022, the merged entity trading as Block commenced trading on the ASX under the ticker SQ2.[34] On January 31, 2022, Block completed the acquisition of Afterpay, officially making it a subsidiary.[32]

In 2023, Bank of America Securities identified Afterpay as the leading BNPL service in the U.S. and one of the top three BNPL services globally, both rankings based on monthly active users.[6]

In February 2024, Axios reported that Afterpay contributed US$1.04 billion in revenue and US$755 million in gross profit to Block in 2023, while processing US$27.3 billion in payments.[5] According to Radio New Zealand in July 2024, Afterpay reported having 24 million global customers as of December 2023 and stated that 95% of customer repayments were made on time during January–March 2024.[3] In November 2024, City A.M. reported that Afterpay claimed a merchant base of 348,000 in five countries and that Molnar was promoted in August 2024 to become Block's "head of sales".[4]

Business model

[edit]

Afterpay offers unsecured installment loans to shoppers.[35] Its loans allow consumers to immediately make in-store and online purchases and repay the loan with fortnightly frequency. Borrowers are permitted to make 4 installment payments spread over 6 weeks, including one down payment (typically worth 25% of the order).[8] The repayments are interest-free, but if they are not paid every two weeks as required, late fees of (in Australia) $10 per indiscretion are incurred.[36][37]

Afterpay bears the risk of default by the consumer. The lender's income consists of payment processing fees and late payment fees.[37][38] Afterpay does not charge fees to shoppers who use the service, unless they miss their scheduled payments. It does, however, charge merchants for offering its service in store or online, and stipulates the charge cannot be passed on to shoppers.[7]

Afterpay doesn’t perform a credit check when approving consumers. Rather, it uses a proprietary risk model to assess customers, including looking at the value of the order (a lower order value may be more likely to be approved), the amount of funds the consumer has on their debit or credit card, and the length of time they have been using Afterpay. The lender rejects about 20% of transactions based on creditworthiness. In 2020, it had to write off less than 1% of sales due to customers not paying back. Afterpay does not report to the credit bureaus, leaving the borrower's credit score unaffected.[8][11]

Impact, criticism and regulation

[edit]

The rise of BNPL services such as Afterpay has been cited as a cause of decreasing credit card use in Australia.[39]

Millennials are Afterpay's main customer demographic, accounting for 75% of all users.[40] Another significant segment of Afterpay's customer base is university students, of which one third have been found to use short-term borrowing.[41] Afterpay has also been criticized as being harmful to consumers. Studies have found that in order to keep up with payments, some users experience financial stress, incurring debt and neglecting essential needs.[42][43] Market commentators suggest that while BNPL payment options (such as Afterpay and its competitors) are showing significant upside for investors, such growth may not be sustained unless the company continues to show that it is able to generate larger basket sizes (i.e., extra sales that consumers would not otherwise have made).[44]

In 2018, Afterpay announced it earned 24.4% of its income from late fees and 75.6% from merchant fees.[45] From 2018 to 2019, the number of credit card accounts dropped nearly 5% from 16.7 million to 15.89 million,[46] with 69% of millennials using their credit card less as a result of Afterpay.[47]

In April 2019, legislation was passed to provide the Australian Securities & Investments Commission (ASIC) with "Product Intervention Powers" (PIP). These powers provide ASIC with authority to intervene where it identifies a risk of significant detriment to retail consumers (including those using BNPL services like Afterpay).[48][49] Afterpay supported the introduction of these powers as a way to provide regulatory oversight and protect consumers.[50] In June 2019, the company disclosed that it was under probe by AUSTRAC for potential breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF regulations). The company was said to be "in dialogue" with the regulators, and the outcome of the probe has yet to be determined.[51] AUSTRAC, upon identifying several concerns with its compliance, ordered the appointment of an external auditor at Afterpay's expense to examine its compliance with the AML/CTF regulations.[12][52][53] PRObono Australia said in 2019 that it was "putting vulnerable young people into vicious cycles of debt that follow them long after they stop spending".[54] Despite this negative press, in 2019, it was reported that 95% of payments had not incurred a late fee.[55]

In February 2020, Afterpay was reported to have 3.6 million active customers in the U.S., 3.1 million in Australia and New Zealand, and 600,000 in the U.K.[56] In November 2020, the ASIC released a report on the BNPL industry, highlighting the need for consumer protections via existing and impending regulatory changes, yet did not call for any new regulation.

The Australian Finance Industry Association's Code of Practice, which came into effect on 1 March 2021, is voluntary, so it does not have the teeth of financial regulation.[57] BNPL platforms charge no interest to its customers, and hence are not subject to Australia's Credit Act.[57] However, during June 2022, the Albanese Government announced that it planned to regulate the BNPL sector under the Credit Act.[58]

In November 2023, Afterpay came under fire on A Current Affair for holding funds from allegedly high-risk businesses, causing a liquidity crisis for many small businesses. Small businesses are at a particularly high risk of having their cash reserves depleted due to delayed payment from Afterpay, often as much as three months.[59][60] Afterpay's use of a 'rolling reserve' means that individual businesses can be out tens of thousands for up to three months, with these funds only gradually released in the form of micropayments e.g. $50 at a time, but not the interest on these funds. Customer use of Afterpay is so high for some businesses, however, that opting out may translate to significant lost business.[61]

Notes

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Afterpay

View on Grokipedia
from Grokipedia

Afterpay is a buy-now-pay-later (BNPL) company founded in , , in 2014 by entrepreneurs and . The platform enables consumers to split eligible purchases into four interest-free installments due every two weeks, with primary revenue derived from merchant transaction fees typically ranging from 4% to 6% of the sale value and additional late fees imposed on customers for missed payments, capped at 25% of the order for smaller transactions. Afterpay pioneered the modern BNPL model, achieving rapid global expansion through partnerships with over 348,000 merchants and serving approximately 24 million active customers by processing billions in annual transaction volume. In January 2022, it was acquired by (formerly Square) for US$29 billion in an all-stock deal, integrating its services into ecosystems like and representing one of the largest acquisitions in history. The company's growth has been accompanied by controversies, including regulatory investigations into anti-money laundering compliance failures and criticisms that its deferred payment structure incentivizes overspending and contributes to unreported cycles, as late fees and repeated usage can exacerbate financial strain without traditional reporting.

History

Founding and early operations (2014–2017)

Afterpay was founded in 2014 by Nick Molnar, an e-commerce entrepreneur, and Anthony Eisen, an investor, in Sydney, Australia. The co-founders met as neighbors in the Sydney suburb of Rose Bay and conceived the buy-now-pay-later model to facilitate installment payments for retail purchases, initially experimenting with it on a struggling jewelry business. This approach enabled customers to split payments into four interest-free installments over six weeks, bypassing traditional credit card interest and lengthy approval processes. The company registered its business name in 2014 and commenced operations in early 2015, initially targeting the Australian market with a focus on online and in-store retail partnerships. Afterpay emphasized rapid approval processes and incentives, such as no upfront fees and shared late charges, to drive adoption among small to medium-sized retailers. Early growth was fueled by demand for accessible, short-term financing alternatives amid rising activity. In mid-2016, Afterpay conducted an on the Australian Securities Exchange, raising A$25 million at a share price of A$1 per share to fund platform enhancements and merchant onboarding. By 2017, the service had expanded to serve one million active customers and over 7,200 merchant partners across , demonstrating strong domestic traction before pursuing international markets.

International expansion (2018–2019)

Afterpay commenced its international expansion with the launch of its service in the United States on May 14, 2018, targeting apparel and lifestyle retailers. The initial rollout partnered with merchants including , , and , focusing on urban and fashion-oriented consumers to replicate its Australian success in installment payments. By the end of fiscal year 2019 (ending June 30, 2019), U.S. operations contributed to global underlying sales reaching A$5.2 billion, a 140% increase year-over-year, driven by rapid and in the larger market. To support U.S. growth, Afterpay raised additional capital, including A$317.2 million in fresh equity during the 11 months to May 2019, amid reported underlying of A$4.7 billion across markets. This funding facilitated infrastructure scaling, such as enhanced risk algorithms adapted for American credit behaviors, though early challenges included higher default rates compared to due to differing patterns. In preparation for further expansion, Afterpay acquired UK-based Clearpay Finance Ltd. in August 2018 for approximately A$110 million, securing a foothold in the European market without building from scratch. The service launched under the Clearpay brand in May 2019, emphasizing debit card-based installments to align with local preferences for avoiding . Within the first 15 weeks, over 200,000 customers were onboarded, exceeding U.S. early-stage metrics, bolstered by a strategic partnership with for broader payment integration. underlying sales annualized at over £0.4 billion by October 2019, reflecting quick traction among retailers in and sectors. These expansions diversified Afterpay's revenue beyond and , where it had operated since , but introduced regulatory scrutiny in new jurisdictions over consumer lending practices and potential debt accumulation risks. By mid-2019, international markets accounted for a growing share of active customers and merchants, setting the stage for accelerated global scaling.

Growth during COVID-19 pandemic (2020)

The COVID-19 pandemic spurred a surge in e-commerce adoption as lockdowns and social distancing measures shifted consumer behavior toward online retail, boosting demand for buy-now-pay-later services like Afterpay. For the fiscal year ended June 30, 2020 (FY20), which encompassed the early global onset of the pandemic from March onward, Afterpay's underlying sales more than doubled to A$11.1 billion from A$5.4 billion in FY19. Total income climbed 97% to A$519.2 million, reflecting expanded transaction volumes across markets. Online sales volumes increased 46% year-over-year, while in-store volumes rose 81% despite retail disruptions from restrictions. Customer growth accelerated markedly during this period, with Afterpay adding an average of 17,300 active customers daily globally in FY20, escalating to 20,500 per day in the fourth quarter as effects intensified. , the company hit five million active customers by May 20, 2020, less than two years after launching there in 2018, underscoring rapid penetration amid heightened digital spending. By June 2020, U.S. active customers reached 5.6 million and U.K. active customers hit one million, contributing to overall platform momentum. The service generated an average of 14.5 million monthly customer referrals to merchants in Q4 FY20, aiding retail partners' adaptation to reduced physical foot traffic. This expansion aligned with broader economic shifts, including deferred payment preferences during uncertainty, though Afterpay maintained risk controls with approval rates below 75% to mitigate potential defaults. EBITDA turned positive at A$44.4 million, signaling operational scaling amid the crisis, even as the company recorded a net loss of A$22.9 million for FY20 due to investment in growth initiatives.

Acquisition by Block, Inc. and integration (2021–2022)

On August 1, 2021, Square, Inc. announced its agreement to acquire Afterpay Limited through a recommended court-approved , under which Square would acquire all issued shares in Afterpay for an implied enterprise value of approximately US$29 billion (A$39 billion), based on Square's closing stock price on July 30, 2021, representing a 31% premium over Afterpay's unaffected share price. The deal, structured as an all-stock transaction, aimed to integrate Afterpay's buy-now-pay-later (BNPL) services into Square's Seller and ecosystems to expand for consumers and merchants, particularly enabling smaller sellers to offer installment payments without upfront integration costs. The acquisition faced standard regulatory hurdles, including approvals from antitrust authorities in multiple jurisdictions. Afterpay shareholders approved the scheme on December 13, 2021, with overwhelming support exceeding 99% of votes cast, following a decline in the implied value per Afterpay share to A$94.82 due to fluctuations in Square's stock price. The Australian Federal Court approved the scheme on December 17, 2021, rendering it legally effective, while final clearance came from Spain's on January 12, 2022. Square completed its rebranding to Block, Inc. in December 2021, and the acquisition closed on January 31, 2022 (U.S. Pacific Time), equivalent to February 1, 2022 (Australian Eastern Daylight Time), with Block acquiring all Afterpay shares and delisting them from the Australian Securities Exchange. In the immediate aftermath, Block began integrating Afterpay by making its BNPL offerings available to Square's online merchants, contributing $130 million in revenue during Block's first quarter of 2022 (February–March). Integration efforts in 2022 focused on leveraging Afterpay's technology to enhance Block's consumer lending capabilities, with initial synergies realized through expanded merchant access to BNPL options and early cross-promotions between users and Afterpay's installment plans, as outlined in Block's May 2022 Investor Day presentation. No significant operational disruptions or regulatory blocks were reported during the acquisition process, though the effective transaction value had decreased to around $13.9 billion in stock terms by completion amid broader market volatility in fintech valuations.

Post-acquisition developments and rebranding (2023–present)

Following the completion of 's acquisition of Afterpay on January 31, 2022, integration efforts intensified from 2023 onward, focusing on embedding Afterpay's (BNPL) capabilities into 's broader ecosystem, particularly and Square. By late 2024, Afterpay began deeper alignment with to enhance credit access and payment reconciliation for users, aiming to serve millions through seamless BNPL options without interest or hidden fees. In early 2025, Block accelerated these initiatives. On February 21, 2025, eligible Cash App debit cardholders in 20 U.S. states and the District of Columbia gained access to Afterpay for splitting past purchases into installments, expanding BNPL utility beyond online checkouts to in-app card transactions. This rollout targeted states including , , , , and , prioritizing users with demonstrated repayment history to mitigate default risks. A pivotal rebranding occurred on March 17, 2025, when Afterpay in the U.S. transitioned to Afterpay, integrating BNPL management directly into the Cash App interface for existing and new users. This change enabled eligible customers to access pay-over-time products at hundreds of thousands of partner merchants online, leveraging Cash App's 57 million monthly active users to drive adoption while maintaining Afterpay's core no-interest, four-installment model. Block emphasized Afterpay's role in its 2025 growth strategy, projecting $10.22 billion in gross profit with BNPL contributing through expanded merchant partnerships and user engagement, alongside AI enhancements and Cash App expansions. Leadership transitions included the departure of Afterpay co-lead Osnat Eisen in November 2024, reflecting ongoing organizational streamlining post-acquisition. These developments positioned Cash App Afterpay as a consolidated offering, prioritizing U.S. market penetration while preserving international operations under the legacy Afterpay brand.

Business model

Core mechanics and user experience

Afterpay operates as a buy-now-pay-later (BNPL) service where consumers can split eligible purchases into four interest-free payments, typically spread over six weeks with the first payment due at checkout and subsequent installments every two weeks thereafter. The platform advances the full purchase amount to the merchant immediately upon approval, assuming the while collecting payments directly from the user via linked or . Eligibility for purchases is determined by factors including payment history, purchase frequency, and spending limits, which start low (often $100–$400 initially) and can increase up to $3,000 or more for established users based on responsible usage. The user process begins with account creation during checkout on a participating merchant's site or app, requiring basic personal information, a valid , and sometimes a phone number for verification; no hard check is performed, though a soft inquiry may assess initial limits. Once approved, users select Afterpay as the option, confirm the order, and receive instant with a digital schedule; the merchant ships the item without delay, as Afterpay handles the upfront minus its merchant fee. Users manage accounts via the Afterpay or , where they can view upcoming payments, receive automated reminders, make early repayments to avoid fees, and track spending across multiple purchases. No interest accrues on on-time payments, rendering the service cost-free under ideal conditions, but late payments incur fees starting at $10 per missed installment, capped collectively at 25% of the original purchase amount or $68 (whichever is lower) to limit penalties. Overdue accounts may face payment plan restrictions, suspension of new purchases, or referral to collections after repeated failures, though Afterpay emphasizes reminders and caps to encourage recovery. For higher-value items, Afterpay offers optional "Pay Monthly" plans with extended terms, but these may involve additional eligibility checks. User experience centers on seamless integration at checkout, minimizing friction with one-tap approvals for returning customers and virtual card options for in-store use, fostering impulse buys without immediate full . The app provides budgeting tools, transaction histories, and notifications, contributing to high satisfaction ratings—such as 4.6/5 on from over 300 reviews citing ease of use and flexible payments—though some users report frustrations with limit adjustments and late fee accumulation from missed reminders. Empirical feedback from 2023–2025 highlights convenience for budgeting larger purchases but notes potential for overuse, as the deferred structure can obscure total costs until fees apply.

Risk management and approval processes

Afterpay's approval process relies on proprietary algorithms that evaluate applications in seconds, assessing factors such as the purchase amount, the user's prior payment history within the platform, and behavioral to determine creditworthiness without requiring traditional hard inquiries. This approach enables rapid decisions at checkout, with Afterpay assuming the full by advancing funds to merchants upfront while consumers repay in interest-free installments over typically six weeks. Approximately 30% of order requests are rejected based on these algorithmic signals, which flag potential issues like excessive spending relative to repayment capacity or anomalous transaction patterns. Following its 2021 acquisition by Block, Inc., Afterpay's underwriting incorporates near real-time data sources beyond conventional credit bureau reports, including transaction-level insights and alternative data, to expand access for underserved users while maintaining low delinquency rates. Internal models developed by Block have demonstrated superior performance over bureau-dependent methods; for instance, sole reliance on major credit bureau data would have excluded a significant portion of Afterpay's approved users, yet the platform's proprietary scoring—drawing on payment history and velocity—has sustained approval rates with effective risk control. Credit-related personal information, including data from credit reporting bodies where applicable, feeds into ongoing risk assessments and user-specific credit scores used for future approvals. Risk management extends to real-time transaction monitoring for fraud detection, unusual activities, and compliance with spending limits, with automated suspensions triggered for overdue payments to prevent further borrowing until resolution. Block's integrated ecosystem enhances this through multi-layered vendor risk programs and advanced analytics, prioritizing privacy-compliant data flows to mitigate systemic exposures like concentrations in consumer credit portfolios. Delinquency rates remain low relative to peers, attributed to the platform's emphasis on small-ticket transactions and iterative user behavior modeling, though critics have noted the speed of approvals may overlook deeper affordability checks in some cases.

Revenue streams and merchant economics

Afterpay derives the majority of its revenue from merchant fees levied on each transaction facilitated through its platform. These fees generally comprise a percentage of the transaction value—typically ranging from 4% to 6%—plus a fixed component of around $0.30 per transaction, with variations depending on factors such as merchant volume, geographic market, and whether the purchase occurs online or in-store. Late fees charged to consumers for missed installment payments form a secondary revenue source, though this has diminished in significance; in 2018, such fees accounted for 24.4% of income, but by Q4 2024, 98% of purchases incurred no late fees due to improved payment behaviors and risk controls. Minor contributions include cost-per-click fees from promoting listings on Afterpay's platform and interchange fees from card networks. From the perspective, Afterpay advances full (minus fees) within one to two business days, transferring and collection duties to the company, which mitigates exposure to defaults and delays inherent in extending credit directly. This structure yields net economic advantages for participating merchants, as evidenced by an average 7.7% uplift in total sales across surveyed Australian retailers in , with 43% reporting increases exceeding 10%. Conversion rates improve markedly, often by 20-30% relative to alternative payment options, alongside higher average order values—up to 20-40% in categories like fashion and beauty—driving incremental revenue that typically exceeds fee costs. An independent analysis commissioned by Afterpay quantified these dynamics for , estimating $6.0 billion in incremental sales and $3.0 billion in net benefits for after $289 million in fees, including efficiencies like 18% lower online return rates.

Financial performance

Afterpay's primary key performance indicators encompass active consumer accounts, partnerships, gross payments volume (GPV), and generated from fees and other streams. As of the third quarter of 2024, the platform served more than 24 million active consumers globally and maintained partnerships with over 348,000 . Quarterly GPV in that period reached $8.24 billion, reflecting sustained transaction activity post-integration with . Pre-acquisition growth was robust, driven by expansion in core markets. For 2021 (ended June 2021), Afterpay reported of $924.3 million, a 78% increase from $519.2 million in fiscal 2020 and more than triple the $264.1 million in fiscal 2019; GMV for fiscal 2021 hit $21.1 billion, up 90% from the prior year. Active consumer base expanded significantly from approximately 7.3 million in 2020 (3.6 million in the U.S., 3.1 million in and , and 0.6 million in the U.K.) to the current scale amid international scaling and pandemic-era e-commerce surges. Following the 2021 acquisition by Block, Inc., Afterpay's metrics integrated into broader reporting, with GPV processing $27.3 billion in 2023 and revenue contribution of $1.04 billion to Block that year, underscoring persistent upward trajectory despite macroeconomic pressures on consumer spending. Year-over-year revenue growth for the Afterpay segment reached 28% into 2024, supported by deeper embedding in Block's Cash App ecosystem and merchant network expansion. These trends highlight Afterpay's shift from regional disruptor to global BNPL leader, with compound annual GPV growth exceeding 50% in early years tapering to high-teens percentages post-2021 amid market maturation.
Fiscal YearRevenue ($M)GMV/GPV Growth
2019264.1N/A
2020519.2N/A
2021924.3+90% (to $21.1B GMV)

Profitability analysis and challenges

Afterpay's profitability trajectory shifted markedly following its acquisition by Block, Inc. in January 2022 for $29 billion. Prior to the deal, the company prioritized rapid expansion over net profitability, incurring significant operating losses amid high customer acquisition and international scaling costs. In the second half of fiscal year 2021, Afterpay reported total income of $645 million, a 50% increase year-over-year, but posted a net loss of $345.5 million, up from $79.2 million in the prior corresponding period, driven by elevated marketing expenses and integration efforts. On an adjusted basis excluding risk losses, Afterpay achieved $375 million in profit minus consumer receivables losses in calendar year 2021, on gross profit of $601 million, reflecting a low-loss credit model with default rates historically below 3%. Post-acquisition, Afterpay's operations have bolstered Block's overall gross profit metrics, with synergies from integration into the ecosystem enhancing margins through and reduced fraud. In 2023, Afterpay contributed approximately $755 million in gross profit to Block while processing substantial transaction volumes. By the first quarter of 2025, Afterpay generated $237 million in gross profit, up 14% year-over-year, accounting for a meaningful portion of Block's BNPL segment performance amid GMV growth to $10.3 billion. Block's company-wide gross profit reached $2.54 billion in the second quarter of 2025, a 14% increase, partly fueled by Afterpay's contributions, supporting Block's full-year 2025 gross profit target of at least $10.22 billion. Despite these gains, Afterpay and the broader BNPL sector grapple with structural challenges to sustainable profitability. The model depends heavily on merchant fees (typically 4-6% of transaction value) and modest late fees, without interest revenue, requiring massive scale to offset fixed costs like technology infrastructure and compliance. Customer acquisition expenses remain high, with initial defaults and sometimes framed as upfront investments, though they erode margins during slowdowns. Economic headwinds amplify risks, as rising interest rates and reduced capacity have pressured repayment rates industry-wide, with BNPL credit losses increasing post-2022 amid higher borrowing costs elsewhere. Afterpay's low historical default rates—often cited below peers—offer resilience, but vulnerability persists in recessions, where overspending facilitated by installment deferrals could spike provisions for bad debts. Regulatory demands, including reporting mandates and oversight in markets like and the , impose additional compliance burdens, potentially curbing growth and profitability. Competition from rivals like and Affirm, coupled with merchant fee sensitivity, further constrains unit economics, as evidenced by BNPL firms' mounting losses when expenses outpace revenue growth.

Economic impact

Benefits for merchants and consumers

Afterpay provides consumers with interest-free installment , typically divided into four equal parts over six weeks, enabling purchases without the need for immediate full upfront and avoiding compounding interest associated with traditional options. This structure offers payment flexibility, particularly for short-term deferrals, as long as repayments are made on time, with no fees for compliant users. In 2023, Afterpay's model saved Australian consumers $127 million in fees and interest compared to equivalent usage, according to company-commissioned analyzing transaction data. For merchants, integration of Afterpay facilitates immediate full payment upon transaction approval, reducing their exposure to consumer default risk while expanding customer reach to those constrained by cash flow. Australian merchants generated $9.6 billion in incremental sales through Afterpay in 2023, driven by factors including larger average basket sizes, higher repeat purchase rates, and improved customer retention. Small and medium-sized businesses (SMBs) in Australia reported an average 13% revenue uplift from partnering with Afterpay, translating to approximately $32,000 in additional annual revenue per merchant. Afterpay's own data indicates merchants experience up to an 18% increase in average transaction values, attributed to the appeal of deferred payments drawing in price-sensitive shoppers who might otherwise forgo purchases. These gains stem from Afterpay's risk assessment approving higher-value transactions, though merchants bear a service fee typically ranging from 4-6% per sale to fund the platform's operations.

Empirical data on market effects

Empirical analyses indicate that Afterpay and similar (BNPL) services have driven measurable uplifts in merchant sales volumes and transaction values. A 2021 report, based on Australian merchant data, estimated that Afterpay generated $6 billion in incremental sales for merchants in 2020, equivalent to additional economic activity across retail sectors. Merchants integrating Afterpay reported average sales increases of 13%, traffic uplifts of 12%, and new customer visits rising by 17%, with these effects concentrated in and apparel categories. Afterpay's average transaction size grew by approximately 18% compared to non-BNPL payments, attributed to deferred payment options encouraging larger purchases. On the consumer side, BNPL adoption, including Afterpay, correlates with higher overall spending levels. A study using retailer transaction data found that customers adopting BNPL increased their online spending by 6.42% on average, with stronger effects among younger and lower-income demographics who showed elevated purchase incidence and basket values. This spending boost exceeds what would be expected from mere intertemporal substitution, suggesting BNPL facilitates additional consumption rather than just timing shifts, as evidenced by persistent retail share increases in total expenditures. In Australia, where Afterpay originated, BNPL transaction values reached about $10 billion across Australia and New Zealand by 2020, growing 55% year-over-year and tripling over the prior two years, with Afterpay processing $8.3 billion of that volume. Broader market dynamics reveal BNPL's competitive positioning against traditional credit cards, with partial substitution but net spending expansion. BNPL fees for merchants (3-6%) exceed credit card interchange rates (under 1%), yet adoption has doubled among Australian merchants over two years to over 53,600 by late , driven by customer acquisition benefits. While BNPL users exhibit higher credit card utilization rates (60-66% from -2023), empirical evidence shows BNPL prompts spending increments even relative to credit card baselines, without proportionally higher defaults (around 2% for pay-in-four loans versus 10% for other ). data positions BNPL as under 2% of total debit/credit card purchase values but 3% of online transactions by count in 2019, indicating niche but expanding influence on markets.

Criticisms and risks

Overspending and debt accumulation

Empirical studies indicate that buy-now-pay-later (BNPL) services, including Afterpay, facilitate higher by presenting purchases as low-cost installments rather than lump sums, often exceeding what users would spend with traditional methods. For instance, analyzing transaction found that BNPL adoption increases purchase likelihood by approximately 9 percentage points, from 17% to 26%, and elevates overall spending by 11.2% monthly, with a shift toward impulse buys in mobile channels. This effect persists even compared to cards, as installment framing psychologically reduces perceived financial burden, prompting overspending among users. Debt accumulation arises from users layering multiple BNPL loans across providers like Afterpay, Klarna, and Affirm without centralized credit visibility, creating unreported "phantom debt." (CFPB) analysis of 2022 data revealed that 63% of BNPL users held simultaneous loans from any firm, with 33% juggling loans from multiple providers, heightening default risks for financially constrained individuals. In Australia, Afterpay's model exacerbates this through late fees—up to $10 per missed installment for purchases over $40, capped but compounding quickly—which accounted for 25% of its revenue in one recent financial year, signaling widespread repayment struggles. Users exhibiting late BNPL payments display markers of financial fragility, such as elevated fees and post-adoption, with new users experiencing rapid increases in these costs relative to non-users. A 2025 survey found that about 50% of BNPL users, including Afterpay customers, reported issues like missed payments or overspending, particularly among younger demographics prone to tracking multiple small debts poorly. In the Australian context, advocacy reports highlight cases where overspending led to $6.5 million in debt recovery and chargebacks for merchants, underscoring how deferred payments mask immediate affordability limits until cumulative obligations surface.

Targeting demographics and ethical concerns

Afterpay primarily targets (born 1981-1996) and (born 1997-2012), who form the core of its user base and drive the majority of spending volume. According to Afterpay's internal analysis, these cohorts account for over 75% of transactions, with representing 14% of spending in as of December 2020 but growing at 55% year-over-year, outpacing other age groups. In broader buy-now-pay-later usage, approximately 60% of Australian users are aged 18-34, reflecting a focus on younger consumers often underserved by traditional due to limited credit histories or aversion to interest-bearing debt. This demographic skew aligns with Afterpay's marketing emphasis on instant approvals and interest-free installments for discretionary purchases like apparel and beauty products, which appeal to impulse-driven spending patterns common in early adulthood. Ethical concerns arise from Afterpay's accessibility to financially novice young users, who may lack experience in managing obligations, potentially normalizing for non-essential consumption without building long-term financial discipline. Critics, including ethical firm Australian Ethical, argue that the model's reliance on late fees—charged at 25% of the purchase value or $68 per missed installment, whichever is smaller—exploits overextension risks among demographics prone to irregular incomes, such as part-time Gen Z workers. A survey of young Australians revealed that 90% encountered financial difficulties that year, with 27% relying on buy-now-pay-later services amid rising living costs, suggesting a between economic vulnerability and BNPL adoption that could perpetuate cycles of missed payments and penalty accumulation. Academic analysis frames BNPL platforms like Afterpay as "gamifying" through seamless, app-based approvals that obscure cumulative obligations, particularly targeting accustomed to digital frictionless experiences but less attuned to repayment realities. Empirical reports document cases where users, predominantly younger, have resorted to high-interest payday loans to service multiple BNPL accounts, with one 2022 study finding 10% of Australian BNPL users juggling services from competitors like Zip to mask delinquencies, amplifying total burdens beyond initial purchase values. While Afterpay enforces spending limits based on payment , the absence of comprehensive reporting in some markets until recent regulatory pushes allows unchecked layering of obligations, raising questions about predatory targeting of demographics with lower rates—evidenced by Gen Z's reported preference for BNPL over cards due to perceived transparency, despite hidden risks of fee escalation.

Comparisons to traditional credit options

Afterpay operates as a buy-now-pay-later (BNPL) service, enabling consumers to split purchases into interest-free installments typically over four payments, contrasting with traditional options such as cards or personal loans that often involve revolving balances and interest accrual if not repaid in full. Unlike cards, which generally require a hard check during application and report payment history to credit bureaus—potentially building or damaging scores—Afterpay performs soft checks or none at all and does not report positive payments, meaning it neither helps establish nor directly impacts scores unless defaults lead to collections. This accessibility appeals to younger users or those with limited access, but empirical data indicates BNPL users, including Afterpay customers, often have lower scores, higher existing debt levels, and elevated delinquency rates on other products compared to traditional users. In terms of costs, Afterpay charges no interest for on-time repayments, avoiding the compound interest rates on credit cards that averaged 20-25% annually in major markets as of 2024, but it imposes late fees—up to $8 or 25% of the installment per missed payment in Australia—which can accumulate and exceed effective borrowing costs if payments are delayed. Credit cards, while incurring interest on carried balances, offer perks like rewards, cashback, or purchase protections absent in BNPL, and full monthly repayment avoids interest entirely, though minimum payments can foster long-term debt. Regulatory analyses highlight that BNPL's fixed, short-term structure reduces flexibility compared to credit cards' revolving nature but may mask risks, as users frequently layer multiple BNPL loans, correlating with higher unsecured debt balances elsewhere.
AspectAfterpay (BNPL)Traditional Credit Cards
InterestNone if paid on time; effective rate rises with late fees.20-25% APR on unpaid balances; 0% if paid in full monthly.
FeesLate fees (e.g., $10 max per installment in some markets); no annual fees.Annual fees possible; interest, cash advance, and over-limit fees.
Credit AssessmentSoft or no hard checks; limits based on transaction history.Hard credit checks required; approval tied to score and income.
Credit ImpactNo reporting of on-time payments; potential collections on defaults.Builds credit with on-time payments; delinquencies harm scores.
Repayment StructureFixed 4-6 installments over weeks; smaller purchases typical.Revolving balance; minimum payments allow deferral but accrue interest.
Additional FeaturesMerchant-specific; no rewards or fraud protection beyond basics.Rewards, extended warranties, travel insurance often included.
While BNPL like Afterpay provides short-term affordability without interest traps for disciplined users, studies show it correlates with increased overall borrowing and financial stress among vulnerable demographics, unlike credit cards where regulatory disclosures and credit-building incentives may promote better long-term habits, though both can enable overspending without sufficient consumer safeguards.

Domestic Australian oversight

Afterpay Australia Pty Ltd, the domestic entity providing buy-now-pay-later services, is primarily overseen by the Australian Securities and Investments Commission (ASIC) as the national conduct regulator for consumer credit under the National Consumer Credit Protection Act 2009 (NCCP Act). The company holds Australian Credit Licence (ACL) number 527911, authorizing it to engage in credit activities. Prior to mid-2025, buy-now-pay-later (BNPL) providers like Afterpay operated with exemptions from key NCCP responsible lending obligations, such as full credit checks and suitability assessments, due to the sector's perceived lower risk profile involving small, interest-free instalments. From June 10, 2025, BNPL contracts, including those offered by Afterpay, are classified as low-cost credit contracts (LCCCs) under amended regulations, subjecting providers to tailored responsible lending requirements, mandatory ACL authorization for credit activities, and membership in the Australian Financial Complaints Authority (AFCA) for external dispute resolution. These reforms mandate partial credit assessments for new customers, caps on late fees (with Afterpay's model permitting up to double the previous limits under certain conditions), and compliance with ASIC's draft guidance on LCCCs, which emphasizes modified obligations suited to smaller loans under $2,000 with fees not exceeding 5% of the credit amount. Afterpay, already possessing an ACL and AFCA membership, advocated for partial rather than full credit checks in regulatory submissions to balance consumer access and . ASIC conducts ongoing industry monitoring, as detailed in reports like Report 672 (REP 672), which examines BNPL consumer experiences, provider practices, and emerging risks such as payment defaults amid economic pressures. The regulator has issued alerts and sought feedback on guidance to ensure BNPL firms, including Afterpay, implement compliant dispute processes and credit reporting, with non-compliance risking enforcement actions like licence conditions or penalties. These measures address prior criticisms of unregulated growth in the BNPL sector, which expanded rapidly post-2014 without interest caps or comprehensive affordability checks, while preserving the model's accessibility compared to higher-cost traditional credit.

International regulatory responses

In the United States, the (CFPB) initiated an inquiry into buy-now-pay-later (BNPL) services on October 24, 2024, requiring Afterpay, along with competitors Affirm, , , and Zip, to provide data on lending volumes, consumer complaints, dispute resolution, and collections practices to assess market risks and protections. However, on May 6, 2025, the CFPB announced it would deprioritize enforcement actions under a prior interpretive rule that had classified certain BNPL loans as credit cards subject to the , reflecting a regulatory retreat amid the Trump administration's review of agency priorities. This shift left BNPL providers like Afterpay with reduced federal oversight, though state-level consumer protections and ongoing monitoring of debt accumulation persisted. In the , where Afterpay operates as Clearpay, the (FCA) and finalized plans on May 19, 2025, to bring BNPL under formal regulation by mid-2026, introducing mandatory affordability assessments, information sharing, and enhanced consumer redress rights for faulty purchases. These measures, set to apply from July 15, 2026, aim to mitigate risks of over-indebtedness by requiring providers to verify repayment affordability before approving loans, potentially restricting access for higher-risk borrowers. The rules extend protections similar to those for cards, including clearer terms on late fees and dispute handling, in response to the sector's growth to £13 billion in outstanding loans. In , Afterpay faces emerging scrutiny through Innovation, Science and Canada's (ISED) review of BNPL risks, launched with a consultation on July 22, 2025, examining vulnerabilities such as overspending and inadequate disclosures amid the market's expansion to $7.5 billion in 2025. While no comprehensive federal framework exists as of October 2025, provincial laws apply, and Afterpay has advocated against credit-card-like regulation, arguing BNPL's short-term, interest-free structure warrants lighter oversight. Proposed standards, potentially effective by mid-2025, include enhanced transparency and limits on aggressive collections, with increased focus on vulnerable demographics.

Major investigations and outcomes

In June 2019, Australia's AUSTRAC initiated an investigation into Afterpay's compliance with anti-money laundering and counter-terrorism financing (AML/CTF) obligations, suspecting breaches of reporting and verification requirements. AUSTRAC mandated an independent external as an enforceable undertaking, focusing on Afterpay's customer identification, transaction monitoring, and reporting systems. The , completed in October 2020, identified deficiencies but resulted in Afterpay enhancing its AML/CTF framework, including improved risk assessments and controls, with AUSTRAC opting not to pursue further enforcement action. In the United States, ’s Department of Business Oversight (now Department of Financial Protection and Innovation) investigated Afterpay in 2019 for operating as a lender without a required state . The probe concluded in March 2020 with a consent order, under which Afterpay agreed to cease unlicensed lending activities, refund certain fees to affected consumers, and pay a $1.5 million penalty without admitting wrongdoing. Separately, the federal (CFPB) launched a into buy-now-pay-later providers including Afterpay, examining practices like dispute handling and , which contributed to market volatility but yielded no specific enforcement outcomes against Afterpay by mid-2025; the CFPB later signaled a reduced enforcement priority for the sector. In the United Kingdom, where Afterpay operates as Clearpay, the (FCA) reviewed BNPL contract terms in 2021-2022 amid broader sector scrutiny. In February 2022, the FCA secured amendments to Clearpay's consumer contracts to address potentially unfair or unclear provisions on late fees, refunds, and cancellations, without imposing fines or admitting liability; these changes aimed to enhance transparency and protections ahead of anticipated full BNPL regulation. No major penalties emerged from UK probes specific to Clearpay by October 2025.

References

  1. https://www.insil.com.au/post/afterpays-success-story-in-depth-case-study/
  2. https://www.smartcompany.com.au/finance/brief-history-afterpay/
  3. https://sprintlaw.com.au/articles/disadvantages-of-offering-afterpay-for-australian-businesses/
  4. https://www.afterpay.com/en-nz/how-it-works
  5. https://www.globaldata.com/store/report/after-pay-competitive-analysis/
  6. https://block.xyz/inside/press-release-afterpay-acquisition
  7. https://www.theguardian.com/australia-news/2019/jun/19/buy-now-pay-later-how-afterpay-went-from-a-triumphant-share-issue-to-an-austrac-investigation
  8. https://www.cnbc.com/2024/01/07/buy-now-pay-later-is-a-troublesome-type-of-phantom-debt-experts-say.html
  9. https://www.australianethical.com.au/insights/why-we-dont-invest-in-afterpay/
  10. https://www.afr.com/companies/financial-services/key-moments-in-the-afterpay-story-from-zero-to-39b-20210802-p58f6n
  11. https://www.cascade.app/studies/afterpay-strategy-study
  12. https://www.afterpay.com/en-AU/business/access/growing-with-afterpay/10th-birthday-lessons
  13. https://www.firstlinks.com.au/the-rise-of-afterpay-and-emergence-of-a-new-business-model
  14. https://www.reuters.com/article/idUSFWN1SL1BF/
  15. https://finance.yahoo.com/news/timeline-afterpays-meteoric-rise-lending-024446745.html
  16. https://www.prnewswire.com/news-releases/afterpay-touch-group-limited-group-2019-annual-results-300908389.html
  17. https://www.annualreports.com/HostedData/AnnualReportArchive/a/ASX_APT_2019.pdf
  18. https://www.afr.com/companies/financial-services/afterpay-reveals-uk-strategy-20190430-p51ijd
  19. https://www.prnewswire.com/news-releases/afterpay-touch-group-limited-is-pleased-to-announce-a-business-update-for-the-period-ended-31-october-2019-300957001.html
  20. https://www.prnewswire.com/news-releases/afterpay-announces-fy20-business-update-301092004.html
  21. https://www.asx.com.au/asxpdf/20200827/pdf/44lyp4x082h1wr.pdf
  22. https://www.prnewswire.com/news-releases/afterpay-announces-full-year-results-301119541.html
  23. https://www.savings.com.au/news/afterpay-booms-in-a-covid-economy
  24. https://www.prnewswire.com/news-releases/afterpay-reaches-five-million-active-customers-after-two-years-in-us-market-301062370.html
  25. https://www.cnn.com/business/newsfeeds/prnewswire/202007130700PR_NEWS_USPR_____SF61281.html
  26. https://squareup.com/us/en/press/square-announces-plans-to-acquire-afterpay
  27. https://www.sec.gov/Archives/edgar/data/1512673/000119312521232215/d186862dex992.htm
  28. https://investors.block.xyz/investor-news/news-details/2021/Square-Inc.-Announces-Plans-to-Acquire-Afterpay-Strengthening-and-Enabling-Further-Integration-Between-its-Seller-and-Cash-App-Ecosystems/default.aspx
  29. https://www.afr.com/companies/financial-services/afterpay-shareholders-show-massive-support-for-acquisition-by-square-20211214-p59had
  30. https://www.reuters.com/markets/deals/afterpay-gets-shareholder-nod-block-inc-buyout-majority-proxy-votes-favour-deal-2021-12-13/
  31. https://fxnewsgroup.com/forex-news/payments/scheme-of-afterpays-acquisition-by-block-inc-now-legally-effective/
  32. https://www.smh.com.au/business/banking-and-finance/block-s-afterpay-bid-wins-final-approval-from-spanish-central-bank-20220112-p59nl7.html
  33. https://www.sec.gov/Archives/edgar/data/1512673/000119312522023529/d261416d8k.htm
  34. https://www.businessinsider.com/block-formerly-square-completes-acquisition-of-afterpay-2022-2
  35. https://www.sec.gov/Archives/edgar/data/1512673/000119312522142338/d340423dex991.htm
  36. https://s29.q4cdn.com/628966176/files/doc_presentations/2022/05/Afterpay-Block-Investor-Day-2022.pdf
  37. https://www.paymentsdive.com/news/will-blocks-afterpay-bet-pay-off-block-acquisition-buy-now-pay-later/628592/
  38. https://optimus.tech/blog/afterpay-joins-cash-app-a-bold-step-toward-inclusive-credit-and-seamless-payment-reconciliation
  39. https://www.paymentsdive.com/news/block-begins-rollout-of-afterpay-on-cash-app-debit-card/740678/
  40. https://investors.block.xyz/investor-news/news-details/2025/Cash-App-Begins-Roll-Out-of-Afterpays-Pay-Over-Time-Offering-at-Hundreds-of-Thousands-of-Merchants/default.aspx
  41. https://finovate.com/block-rebrands-afterpay-to-cash-app-afterpay/
  42. https://wwd.com/business-news/business-features/cash-app-afterpay-bnpl-access-gen-z-flexible-payments-1237049316/
  43. https://seekingalpha.com/news/4411655-block-targets-10_22b-gross-profit-for-2025-with-focus-on-ai-afterpay-and-cash-app-growth
  44. https://s29.q4cdn.com/628966176/files/doc_downloads/2025/05/Block_2025-Proxy-Statement.pdf
  45. https://www.emarketer.com/content/cash-app-afterpay-merge-block-consolidates-offerings
  46. https://www.afterpay.com/en-US/for-retailers/access/news/afterpay-now-cash-app-afterpay
  47. https://www.afterpay.com/en-US/how-it-works
  48. https://www.forbes.com/advisor/personal-loans/afterpay-review/
  49. https://synder.com/blog/how-does-afterpay-work-a-quick-guide/
  50. https://www.afterpay.com/en-AU/how-it-works
  51. https://www.afterpay.com/en-US/for-retailers/access/set-up-for-success/what-is-pay-monthly
  52. https://ecommerce-platforms.com/articles/afterpay-review
  53. https://www.capterra.com/p/229452/Afterpay/reviews/
  54. https://money.usnews.com/loans/personal-loans/reviews/afterpay
  55. https://www.afterpay.com/en-au/terms-of-service
  56. https://wise.com/us/blog/is-afterpay-safe
  57. https://stripe.com/resources/more/afterpay-clearpay-an-in-depth-guide
  58. https://investors.block.xyz/investor-news/news-details/2025/Blocks-Modern-Approach-to-Credit-Expanding-Access-While-Managing-Risk/default.aspx
  59. https://block.xyz/inside/building-trust-through-responsible-innovation
  60. https://www.afterpay.com/en-AU/credit-reporting-policy
  61. https://s29.q4cdn.com/628966176/files/doc_governance/2024/10/Block-Inc-Modern-Slavery-Statement-Oct-2024.pdf
  62. https://www.abc.net.au/news/2017-09-26/afterpay-consumer-debt/8988394
  63. https://clickclickmedia.com.au/post/afterpay-merchant-fees-2025/
  64. https://www.chargeblast.com/blog/affirm-vs-afterpay-klarna-which-has-lower-merchant-fees/
  65. https://www.financemagnates.com/fintech/payments/afterpay-merchant-services-fees-and-charges-explained/
  66. https://investors.block.xyz/investor-news/news-details/2025/Just-in-Time-for-Spring-Cash-App-Afterpay-Expands-Merchant-Network-to-Empower-Smarter-Spending/default.aspx
  67. https://productmint.com/afterpay-business-model-how-does-afterpay-make-money/
  68. https://seekingalpha.com/article/4502418-how-afterpay-makes-money
  69. https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/03/Accenture_Afterpay_Report_Final-Updated-21-April-2021.pdf
  70. https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2021/10/08-21-Afterpay-key-facts-AU-August.pdf
  71. https://sensepass.com/benefits-of-bnpl-for-merchants/
  72. https://www.afterpay.com/en-au/express-checkout
  73. https://newsroom.afterpay.com/updates/afterpay-turns-10-how-aussie-customer-behaviour-has-changed-a-decade-after-bnpl-offered-a-better-way-to-pay
  74. https://www.intelligentinvestor.com.au/shares/asx-apt/afterpay-limited/financials
  75. https://www.accc.gov.au/system/files/public-registers/documents/Annexure%252090%2520-%2520Afterpay%2520F21%2520Annual%2520Report%2520-%252002.12.22%2520-%2520PR%2520-%2520MA1000023%2520ANZ%2520Suncorp.pdf
  76. https://assets.website-files.com/6803413141db9f6503c5b6a5/68cea1c7d711092b9d7c4885_13386810548.pdf
  77. https://www.chargeflow.io/blog/buy-now-pay-later-statistics
  78. https://businessmodelanalyst.com/is-afterpay-profitable/
  79. https://s29.q4cdn.com/628966176/files/doc_financials/2025/q1/Block_Investor-Presentation-1Q25.pdf
  80. https://www.popularfintech.com/p/block-is-back-sort-of-442a32a94f32c53c
  81. https://www.sharecafe.com.au/2025/08/08/afterpay-fuels-blocks-profit-surge/
  82. https://www.intelligentinvestor.com.au/investment-news/afterpay-bulls-and-bears/148633
  83. https://thefinancialbrand.com/news/buy-now-pay-later/the-dark-side-of-buy-now-pay-later-risks-facing-the-banking-industry-123000
  84. https://www.paymentsdive.com/news/buy-now-pay-later-bnpl-payments-affirm-klarna-afterpay-profits-consolidation-regulation-cfpb/653932/
  85. https://www.bis.org/publ/qtrpdf/r_qt2312e.htm
  86. https://www.news.com.au/finance/business/banking/afterpay-zip-and-other-bnpl-providers-face-becoming-completely-unprofitable/news-story/efada1ede12e473ddeebeaa8f58f8478
  87. https://www.afterpay.com/en-US
  88. https://www.sciencedirect.com/science/article/pii/S002243592500003X
  89. https://newsroom.afterpay.com/updates/afterpays-no-interest-model-saved-australians-127-million-in-consumer-fees-and-interest-in-2023-compared-to-credit-cards-research-reveals
  90. https://www.afterpay.com/en-US/for-retailers/access/operations/give-your-customers-the-flexibility-they-need-with-buy-now-pay-later
  91. https://www.afterpay.com/en-AU/business/access/news/afterpay-economic-impact-report-2024
  92. https://afterpay.com/en-NZ/business/access/news/small-business-big-opportunity-report
  93. https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2023/10/The-Economic-Impact-of-Afterpay-in-the-US.pdf
  94. https://retailers.afterpay.com/buy-now-pay-later-report/
  95. https://www.sciencedirect.com/science/article/pii/S0022435924000654
  96. https://www.richmondfed.org/publications/research/economic_brief/2025/eb_25-03
  97. https://www.rba.gov.au/publications/bulletin/2021/mar/developments-in-the-buy-now-pay-later-market.html
  98. https://files.consumerfinance.gov/f/documents/cfpb_BNPL_Report_2025_01.pdf
  99. https://hbr.org/2024/11/research-how-buy-now-pay-later-is-changing-consumer-spending
  100. https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1343&context=icis2023
  101. https://files.consumerfinance.gov/f/documents/cfpb_buy-now-pay-later-market-trends-consumer-impacts_report_2022-09.pdf
  102. https://www.kansascityfed.org/research/economic-review/financial-constraints-among-buy-now-pay-later-users/
  103. https://basehomeloans.com.au/the-unknown-risks-of-afterpay/
  104. https://pubsonline.informs.org/doi/10.1287/mnsc.2022.03266
  105. https://www.bankrate.com/loans/personal-loans/buy-now-pay-later-survey/
  106. https://www.choice.com.au/shopping/online-shopping/buying-online/articles/what-is-afterpay
  107. https://aintreegroup.com.au/insights/the-risks-of-afterpay/
  108. https://afterpay-newsroom.yourcreative.com.au/wp-content/uploads/2022/03/Afterpay_Web_report_AUS_vF.pdf
  109. https://business.sydney.edu.au/__data/assets/pdf_file/0007/671380/2018_USBSCC_Afterpay-compressed.pdf
  110. https://www.afterpay.com/en-AU/business/access/meet-gen-z---millennials
  111. https://theconversation.com/90-of-young-people-had-financial-troubles-in-2022-and-27-used-buy-now-pay-later-services-195809
  112. https://www.tandfonline.com/doi/full/10.1080/17530350.2024.2346210
  113. https://au.finance.yahoo.com/news/afterpay-zip-aussies-taking-loans-meet-repayments-234139830.html
  114. https://www.debt.com/news/gen-z-is-ditching-credit-cards-for-bnpl/
  115. https://www.investopedia.com/buy-now-pay-later-5182291
  116. https://www.afterpay.com/en-CA/afterpay-misconceptions
  117. https://www.equifax.com/personal/education/personal-finance/articles/-/learn/what-is-after-pay/
  118. https://www.bis.org/publ/qtrpdf/r_qt2312e.pdf
  119. https://www.finder.com.au/credit-cards/credit-cards-vs-buy-now-pay-later
  120. https://www.ratecity.com.au/credit-cards/articles/afterpay-different-credit-card
  121. https://www.centralbank.net/learning-center/is-after-pay-a-credit-card/
  122. https://www.consumerfinance.gov/about-us/newsroom/cfpb-research-reveals-heavy-buy-now-pay-later-use-among-borrowers-with-high-credit-balances-and-multiple-pay-in-four-loans/
  123. https://www.financialcounsellingaustralia.org.au/fca-content/uploads/2022/07/Comparative-Interest-Rates-BNPL-v-Credit-Cards-1.pdf
  124. https://eastexcu.org/5-key-afterpay-facts/
  125. https://www.reddit.com/r/AusFinance/comments/1cyl0if/is_afterpay_or_creditcard_worse_for_credit/
  126. https://treasury.gov.au/sites/default/files/2023-02/c2022-338372-asic.pdf
  127. https://www.afterpay.com/en-AU/buy-now-pay-later-code-of-practice-in-australia
  128. https://www.reuters.com/technology/australia-regulate-buy-now-pay-later-sector-2023-05-21/
  129. https://www.asic.gov.au/about-asic/news-centre/news-items/asic-alerts-buy-now-pay-later-providers-to-apply-for-a-licence-under-new-laws/
  130. https://www.financialcounsellingaustralia.org.au/fca-content/uploads/2025/02/250212-BNPL-Reg-sub-87.pdf
  131. https://www.fintechlawblog.com/2025/02/13/australia-asic-prepares-guidance-following-the-release-of-bnpl-regulations/
  132. https://treasury.gov.au/sites/default/files/2024-05/c2024-504798-afterpay.pdf
  133. https://www.asic.gov.au/regulatory-resources/find-a-document/reports/rep-672-buy-now-pay-later-an-industry-update/
  134. https://www.startupdaily.net/topic/asic-is-cracking-down-on-buy-now-pay-later-fintechs-and-wants-to-know-what-everyone-thinks/
  135. https://journals.sagepub.com/doi/10.1177/1037969X251338353
  136. https://ised-isde.canada.ca/site/search-research-database/en/node/15346
  137. https://www.globenewswire.com/news-release/2025/02/17/3027136/0/en/Canada-Buy-Now-Pay-Later-Business-Report-2025-2030-Afterpay-Sezzle-Klarna-Affirm-and-PayBright-are-Actively-Shaping-the-Competitive-Landscape-of-the-Burgeoning-7-5-Billion-Industry.html
  138. https://www.austrac.gov.au/news-and-media/media-release/austrac-orders-audit-afterpays-compliance-financial-crime-legislation
  139. https://www.austrac.gov.au/news-and-media/our-recent-work/austrac-finalises-external-audit-afterpay
  140. https://www.reuters.com/article/world/asia-pacific/australian-regulator-to-not-take-action-against-afterpay-after-audit-idUSKBN26Y34O/
  141. https://dfpi.ca.gov/wp-content/uploads/sites/337/2020/03/afterpay-settlement.pdf
  142. https://dfpi.ca.gov/wp-content/uploads/sites/337/2020/03/News-Release-Afterpay-settlement-3-16-2020.pdf
  143. https://www.financialstandard.com.au/news/afterpay-coughs-up-1-5m-over-us-loans-156208875
  144. https://www.cnbc.com/2021/12/17/buy-now-pay-later-stocks-tumble-on-us-regulatory-probe.html
  145. https://www.complianceweek.com/regulatory-enforcement/buy-now-pay-later-firms-catch-a-break-as-cfpb-backs-off-enforcement/35996.article
  146. https://www.fca.org.uk/news/press-releases/fca-secures-contract-changes-buy-now-pay-later-customers
Add your contribution
Related Hubs
User Avatar
No comments yet.