Business

Block CFO says customers return almost everything they buy now, then pay off their loans

Nearly all of Afterpay’s customers paid their dues in 2021, Bloc’s chief financial officer Amrita Ahuja told CNBC on Thursday when parents of the Cash App were now asked about the service they bought and then paid for.

“What I’m going to say about losses is that the team has been very intentional in managing consumer losses as an input to growth,” Ahuja said in an interview with Mad Money.

He later added, “98% of consumer dues were paid by the end of the year, which is the same percentage we saw in the first half. It’s a key focus for us.”

When Cramer asked Ahuja if the phrase “buy now, never pay” is true, he said Afterpay’s consumer losses were up 8 basis points in the second half of 2021 compared to the first half of the year. A base point is 0.01%.

Ahuja’s comments come after the company, better known as Square, reported better than expected in the fourth quarter of February 24th. Block shares fell 8.08% on Thursday, well below their 52-week high.

Block closed its purchase of Afterpay in January, a deal that came after it was now bought, and later paid for by the rising popularity of services in the coronavirus pandemic.

“We know that our sellers are now demanding to buy, then pay. They want billions of millennials and Z Gene consumers looking outside the traditional financial credit system,” he said.

Ahuja also said that with Block’s online platform launching product integration on the “first day”, more will come.

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Block CFO says customers return almost everything they buy now, then pay off their loans

Source link Block CFO says customers return almost everything they buy now, then pay off their loans

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