Axios Pro Exclusive Content

Afterpay, Block's BNPL platform, begins growing again

headshot
Feb 23, 2024
Data: Company filings, transcripts; Chart: Axios Visuals; Note: GMV data prior to 2022 comes from Afterpay
Data: Company filings, transcripts; Chart: Axios Visuals; Note: GMV data prior to 2022 comes from Afterpay

The amount users spent on Afterpay, Block's BNPL platform, began growing once again last year after integration efforts stunted its expansion in 2022.

Why it matters: Gross merchandise volume, which measures total orders processed through Afterpay, grew to $27.3 billion in 2023, per Block's fourth-quarter earnings report.

  • That came after GMV shrank in 2022, the year that Block began integrating the BNPL platform into its operations.
  • Klarna, by comparison, said it grew its GMV by 22% in 2022.

Context: Block agreed to acquire Afterpay in a deal valued at $29 billion in 2021, marking its entry into the BNPL sector.

What they're saying: Block initially had split Afterpay between its consumer-driven Cash App division and B2B-focused Square segment.

  • "We realized last year that that was incorrect, and that we should put the majority of it within Cash App," CEO Jack Dorsey said in yesterday's earnings call.
  • Afterpay contributed about $1.04 billion in revenue to Cash App and $755 million in gross profit last year, up 28% each compared with the year prior.
Go deeper