Loans and phones: Block's post-layoff battle with banks, fintechs

Block is making a major move to dominate the checkout experience by integrating Afterpay deeper into its ecosystem. For retailers, this means Afterpay is no longer just a standalone button on your website. It is becoming a core part of the Cash App App ecosystem, which millions of consumers use for their daily banking and shopping. Block is expanding its ‘buy now, pay later’ (BNPL) network to reach more merchants and physical points of sale. This is a direct challenge to traditional credit cards and legacy banks. The company is focused on ‘closed-loop’ commerce. They want the customer to discover your products in the Cash App, pay using Afterpay, and manage the balance all in one place. For operators, this could mean lower friction at checkout and access to a younger, tech-savvy demographic that shuns traditional debt. Block is also experimenting with a mobile phone plan for Cash App users. This suggests they want to be the primary service provider for your customers, potentially offering more data and loyalty hooks for the merchants who use their payment rails. If you currently offer Afterpay or use Square hardware, expect a tighter integration between your shop’s sales data and the financing offers your customers see.

Source: American Banker — Top News

← Return to the library· Submit a correction