How Afterpay Makes Money

Annual Revenue: ~$596.4M

Executive Summary

Afterpay generates revenue primarily through Buy Now, with roughly ~$596.4M in annual revenue.

Core Growth Engine: Block stated at closing that it intended to add Afterpay BNPL to Square checkout, let Afterpay customers manage installments in Cash App, and help Cash App customers discover sellers and BNPL offers. Subsequent expansion...

Revenue Model & Pricing

Before the Block acquisition, Afterpay earned most income from merchant fees on purchases processed through its platform, with a smaller contribution from customer late fees. Customers generally paid four installments over six weeks and paid no interest. Block now reports Afterpay within its consolidated results rather than as a standalone public company.

Core Revenue Streams

Merchant fees

Not formally reported

Fees paid by merchants on transactions processed through Afterpay were the principal source of pre-acquisition income.

Late fees

Not formally reported

Afterpay also earned capped late fees from overdue customer installments. A current standalone percentage is not disclosed.

Growth Strategy

Block stated at closing that it intended to add Afterpay BNPL to Square checkout, let Afterpay customers manage installments in Cash App, and help Cash App customers discover sellers and BNPL offers. Subsequent expansion has focused on those seller and consumer connections.