98% of Afterpay Customers Repaid BNPL Loans in 2021
Nearly all Afterpay users paid back their installments in 2021, Block CFO Amrita Ahuja told CNBC when questioned about the company’s acquisition of the “buy now, pay later” (BNPL) service. 98 percent of users repaid their loans by the end of the year, which is the same percentage the company saw in the first half of 2021.
“What I will say about losses, is that the team has actually been incredibly deliberate in managing consumer losses as an input rather than an output to growth,” said Ahuja in an interview on “Mad Money.”
Block closed its acquisition of Afterpay in January as the popularity of BNPL services rose during the COVID-19 pandemic. Consumer losses for Afterpay were up 8 basis points—one of which equals 0.01 percent—in the second half of the year compared to the first half.
In February, the company reported a better-than-expected fourth quarter of 2021, when it was known as Square. Earlier this month, Block shares closed down 8.08 percent, which is well below its 52-week high.
Additionally, Ahuja noted that Block launched a product integration with Square’s online platform on “day one,” with more details to come.
“We know that our sellers are asking for buy now, pay later,” she said. “They want access to the tens of millions of millennials and Gen Z consumers who are looking outside of the traditional financial system for credit.”