Nearly all Afterpay customers have repaid their installments in 2021, Block CFO Amrita Ahuja told CNBC on Thursday when asked about the Cash App parent company’s acquisition of the buy-it-now and pay-later service. .
“What I will say about the losses is that the team has actually been incredibly deliberate in managing the consumption losses as an entry rather than an exit for growth,” Ahuja said in an interview on “Mad Money”.
She later added, “98% of consumer payments were refunded by the end of the year, which is the same percentage we saw in the first half. This is a key area for us.”
When Cramer asked Ahuja if the phrase “buy now, never pay” rings true, she said consumer losses for Afterpay increased by 8 basis points in the second half of 2021 compared to the first half. One basis point equals 0.01%.
Ahuja’s comments come after the company formerly known as Square reported a better-than-expected fourth quarter on February 24. Bulk shares closed down 8.08% on Thursday, well below their 52-week high.
Block closed its acquisition of Afterpay in January, a deal that came after buy now, pay later services saw their popularity soar during the coronavirus pandemic.
“We know that our sellers are asking to buy now, pay later. They want access to the tens of millions of millennial and Gen Z consumers who are looking for credit outside of the traditional financial system,” a- she declared.
Ahuja also said Block launched a product integration with Square’s online platform on “day one,” with more to come.
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