Nearly all Afterpay customers paid their dues in 2021, Block CFO Amrita Ahuja told CNBC on Thursday when she was asked about a Cash parent’s acquisition of the Buy Now, Pay Later service.
“What I’m going to say about the losses is that the team has actually been incredibly conscious in managing consumer losses as input, not the result of growth,” Ahuja said in an interview with Mad Money.
She later added: “98% of consumer contributions were paid by the end of the year, which is the same percentage we saw in the first half of the year. That’s a key area of focus for us. “
When Kramer asked Ahuja if the phrase “buy now, never pay” was true, she said that consumer losses for Afterpay had increased by 8 basis points in the second half of 2021 compared to the first half of the year. The base point is 0.01%.
Ahuja’s comments come after the company, formerly known as Square, reported better than expected in the fourth quarter on February 24. Bloc stocks fell 8.08% this Thursday, well below their 52-week high.
Block closed the acquisition of Afterpay in January, a deal that came after the purchase now, payment later for their services increased during the coronavirus pandemic.
“We know our sellers want to buy now, they pay later. They want access to the tens of millions of millennials and Generation Z consumers seeking credit outside the traditional financial system, “she said.
Ahuja also said that Block is launching a product integration with Square’s online platform on Day One, with more to come.
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