Block’s Cash App profit and number of users grew in the first quarter as the payments provider integrated buy now, pay later provider Afterpay.  

Block, formerly Square, acquired Afterpay in August 2021 for $29 billion but it has had issues integrating the solution with its Cash App Card debit card, Chief Executive Jack Dorsey said during Block’s Q1 earnings call today.

“I would say that we forced an integration way too quickly,” he said. 

The San Francisco-based company is making the visibility of Afterpay within its ecosystem easier to find and adopt, Dorsey said. The rollout of Afterpay on Cash App Card has begun and the company is monitoring how consumers are using it, where they are finding value and how the product is perceived, he said.  

“It’s taken us some time to get here, but we’re here,” he said.  

Block must fix integration issues before the company can truly benefit from Afterpay, which is expected to start contributing to growth at Block “into 2025 and beyond,” Dorsey said. 

BY THE NUMBERS: Block reported in Q1: 

• Afterpay’s gross merchant volume increased 25% year over year to $6.9 billion;  
• Cash App Card’s monthly activity grew 16% YoY to 24 million transactions; and 
• Cash App gross profit increased 25% YoY to $1.2 billion. 

WHAT THEY ARE SAYING: According to a Bank of America Securities report published on April 22, Block is expected to see increased revenue as growth in monthly active users for Cash App and Cash App Card allows it to “monetize paycheck deposit activities.”

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