More availability = more transactions where Block can take a cut.
👉 Background: Block (formerly known as Square) got its hands on Afterpay last year. The takeover was completed in Feb '22 and, shortly after, Block integrated Afterpay with its ecommerce customers.
What happened: That meant Square's e-comm merchant customers automatically gained access to Afterpay's loans. Now, the same is true for Block's in-store retail customers.
👉 What else: By boosting customer orders through Afterpay, Block is hoping to also increase its own key metrics - particularly sales and profit.
💡 Block's business model is centred around taking a cut of each transaction from a merchant. Every time you pay on that slick, white terminal, Block makes some moula 🤑.
💡Block's always looking at new ways to increase the size and frequency of transactions. Afterpay's seen enormous success in some industries in recent years, but not every industry...
💡This move lets Block scale Afterpay to other sectors (e.g. hairdressers) immediately. It seems to be working so far... Order volumes are supposedly up 100% in Aussie tests and 50% in the US.
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