Block has introduced Afterpay, its buy now, pay later (BNPL) service, to the Cash App Card. With this partnership, Block aims to attract Gen Z users who prefer alternatives to traditional credit cards. This move is a part of the company’s strategic plan to connect its three business units under a “neighborhood network.”
With BNPL integrations, Cash App Card users can split (eligible purchases over $25 made within the past seven days) into two or four interest-free payments every two weeks. Users can manage their payments directly within the Cash App. This integration is the next phase of Afterpay’s development following Block’s $29 billion acquisition of the Australian BNPL company in January 2022.
Key Takeaways
- Block Inc. has integrated Afterpay into the Cash App debit card. Now, users can split eligible purchases over $25 into two or four interest-free biweekly payments. This move enhances financial flexibility and aligns with consumer demand for alternative credit options.
- The integration is focused on attracting younger consumers, particularly Gen Z, who prefer BNPL services over traditional credit cards. Research shows that over one-third of Gen Z actively use credit cards, making this move a strategic effort to capture a growing market segment.
- Afterpay has already driven significant spending increases, with BNPL originations totaling nearly $150 million during testing. Merchants also benefit, as BNPL services have generated 460 million customer leads, potentially boosting sales and customer loyalty.
- The rollout began in February 2025 across 20 states and the District of Columbia, with plans for further expansion based on consumer adoption and feedback. Block wants to refine the service and enhance user experience as part of its broader financial ecosystem strategy.
Block Expands Afterpay for Cash App Card, Targeting Gen Z and Digital Payment Growth
In a strategic move to enhance consumer payment options, Block Inc., formerly known as Square, has integrated its BNPL service, Afterpay, into the Cash App debit card. This integration aims to offer Cash App users greater flexibility in managing their finances, aligning with the evolving landscape of digital payments.
Founded in 2009 by Jack Dorsey and Jim McKelvey, Block Inc. has established itself as a prominent player in the financial technology sector. The company’s portfolio includes Square, a point-of-sale system for merchants, and Cash App, a consumer-focused digital wallet introduced in 2013. Cash App enables users to send, receive, and store money, access a debit card, invest in stocks and bitcoin, and file taxes. As of 2024, Cash App reported 57 million users and $283 billion in annual inflows.
In January 2022, Block completed the acquisition of Afterpay, an Australian BNPL provider, for $29 billion. This move was part of Block’s strategy to expand its consumer financial services and cater to the growing demand for alternative credit options. Afterpay allows consumers to split purchases into interest-free installments, offering a flexible alternative to traditional credit cards.
Integrating Afterpay into the Cash App debit card significantly advances Block’s mission to provide versatile financial solutions. This feature enables Cash App cardholders to split eligible purchases over $25 into two or four interest-free biweekly payments. Users can manage these installment plans directly within the Cash App interface, simplifying the process of tracking and controlling costs. By the close of 2024, Cash App Borrow, which offers small, short-term loans to qualifying users within the Cash App, had amassed 5 million monthly active users.
During a recent call with equity analysts, Amrita Ahuja, Block’s Chief Operating Officer and Chief Financial Officer, highlighted the significant potential of the Cash App card, which boasts 25 million active users as of December, as a powerful platform for launching new products. Ahuja noted that during the pilot phase of integrating Afterpay into the Cash App card, Block recorded nearly $150 million in originations. After approximately a year of methodical testing, the rollout of this feature began this week.
She emphasized that the integration of Afterpay provides Cash App users with an additional tool for managing their finances and promotes increased spending through the Cash App card.
The rollout of Afterpay on Cash App cards began in February 2025. Initially, the service became available to eligible cardholders in 20 states and the District of Columbia, including Ohio, Florida, Indiana, Arizona, and Texas. Block has indicated plans to expand this feature to additional regions as they “test and learn” from the initial implementation.
The integration is mainly aimed at younger consumers, notably Generation Z, who have shown an aversion to traditional credit cards. Research indicates that only 35% of Gen Z consumers actively use credit cards, with many expressing a preference for alternative payment methods like BNPL services.
Additionally, Amrita Ahuja noted that the Cash App Card has achieved considerable scale, particularly with Millennials and Generation Z. According to Block’s estimates, 21% of all 18-to-21-year-olds in the United States used the Cash App Card in 2024. By offering Afterpay through Cash App, Block aims to meet the spending habits of this demographic, potentially expanding both usage and engagement.
The addition of Afterpay is expected to drive increased spending through the Cash App card. Afterpay logged nearly $150 million in BNPL originations during a year of pilot testing. Consumers who have used Afterpay for more than five years transact more than 31 times per year on average, compared to four times a year for cardholders who don’t use Afterpay. This suggests the integration could lead to higher transaction frequency among Cash App users.
The integration offers merchants access to a broader customer base that prefers flexible payment options. As of the third quarter of 2024, Afterpay had driven 460 million customer leads to merchants. By accommodating BNPL options, businesses can attract consumers who might be hesitant to make larger purchases upfront, potentially increasing sales and customer loyalty.
The integration is designed to be seamless for users. Upon making a qualifying purchase with their Cash App card, users can opt to split the payment into installments through Afterpay. The entire process, from selection to payment management, is handled within the Cash App, providing a cohesive user experience. This ease of use is expected to encourage adoption among existing Cash App users and attract new ones seeking flexible payment solutions.
While BNPL services offer flexibility, they also require responsible usage to avoid potential pitfalls such as accumulating debt. Block emphasizes transparent terms and encourages users to utilize these services within their financial means. The integration includes features that allow users to monitor their installment plans and receive reminders about upcoming payments, promoting financial responsibility.
The company is optimistic about Cash App Borrow’s growth prospects. Over the past year, 43% of its active users reported using the service to assist in bill payments, and 33% utilized it to stabilize their cash flow between paychecks. Ahuja highlighted that customers value the financial management capabilities provided by Cash App Borrow, observing that active users generate 13% more inflows and participate in 6% more transactions than non-users.
Introduced in 2013 as Square Cash, Cash App has developed into a business generating $5 billion in gross profit, according to Block chairman and co-founder Jack Dorsey in a letter to shareholders. Block’s ambition is to position Cash App as the leading banking service provider in the U.S. for households earning up to $150,000 annually.
On the technological front, Block has initiated a project dubbed “goose.” This project involves an open-source, on-machine artificial intelligence agent that operates on any large-language model, whether in the cloud or locally, and can be tailored to user specifications. During the call, Dorsey referred to the project as a “foundational” step towards establishing Block as a leader in AI.
About Block
Block, Inc., initially named Square, Inc., is a leading technology firm in the U.S. offering financial services to individual consumers and business merchants. The company is best known for its “Square” point-of-sale system, which helps businesses accept card payments and handle various operational tasks such as inventory, payroll, and bookings.
Additionally, Block runs the widely-used Cash App, a digital wallet app that allows users to transfer money, receive funds, and invest, including in Bitcoin. Established by Jack Dorsey in 2009, Block has become a prominent player in the U.S. point-of-sale system market.
About Afterpay
Afterpay, an Australian fintech company founded in 2014 by Nick Molnar and Anthony Eisen, specializes in a “buy now, pay later” (BNPL) service. This service lets consumers purchase and pay for them in four interest-free installments. Afterpay primarily earns revenue by charging merchants a fee to offer this payment option to their customers. The platform caters mainly to younger shoppers who prefer flexible payment solutions, either online or in-store.
One notable aspect of Afterpay’s service is that it does not require credit checks for most customers and does not impose interest charges, provided payments are made on time. The system is designed for easy integration with the checkout processes of online retailers. Afterpay has expanded its operations beyond Australia to include New Zealand, the United States, Canada, the United Kingdom, and Europe. In 2021, Afterpay was acquired by Block, Inc., formerly known as Square, enhancing its global reach and financial capabilities.
Conclusion
Block Inc.’s strategic decision to integrate Afterpay into its Cash App debit card is a pivotal development in digital payments, mainly aimed at catering to the preferences of Gen Z consumers. This integration not only enhances the Cash App’s versatility, making it a more robust tool for managing personal finances, but it also aligns with the evolving trends in consumer credit, where flexibility and immediacy are highly valued.
Users’ ability to split purchases into manageable, interest-free installments directly through their Cash App offers a seamless blend of convenience and control, potentially increasing user engagement and satisfaction. As Block continues to expand its suite of services and refine this integration based on user feedback and market dynamics, it stands to influence how young consumers engage with digital finance significantly.
This move by Block underscores its commitment to innovating user-friendly financial solutions and strategically positions it to capture a significant share of the burgeoning market for alternative credit solutions.
