If you’re interested in buying Afterpay stock, you’ll need to understand some important changes that have taken place. Afterpay, the popular buy-now-pay-later platform, was acquired by Block Inc. (formerly Square) in January 2022 for $29 billion.
While you can no longer purchase Afterpay shares directly, you can still invest in the company through Block Inc.’s stock, which trades under the ticker symbol “SQ” on the New York Stock Exchange. This means when you invest in Block, you’re also gaining exposure to Afterpay’s growing buy-now-pay-later business alongside Block’s other financial technology services.
What Is Afterpay and How It Works
Afterpay operates as a buy now pay later (BNPL) service enabling consumers to split purchases into 4 equal installment payments over 6 weeks with zero interest. The platform integrates directly with online retailers such as Amazon Target Sephora.
Here’s how Afterpay’s payment structure works:
- Make the first 25% payment at checkout
- Pay three remaining installments every 2 weeks
- Receive automatic payment reminders before due dates
- Access instant approval decisions for purchases
- View payment schedules in the mobile app dashboard
The service generates revenue through:
- Merchant fees ranging from 4% to 6% per transaction
- Late payment fees charged to customers
- Interest earned on customer payment float
- Data monetization from shopping insights
Key features for merchants include:
- Increased average order values up to 40%
- Higher conversion rates versus traditional payment methods
- Access to Afterpay’s millennial customer base
- Integration with existing point of sale systems
- Real time fraud prevention tools
| Afterpay Usage Statistics | Data |
|---|---|
| Active Customers | 16.2M |
| Merchant Partners | 100K+ |
| Average Transaction Value | $150 |
| Payment Completion Rate | 95% |
| Annual Revenue (2021) | $925M |
The platform’s business model focuses on millennial shoppers ages 25-40 who prefer installment payments over traditional credit cards for managing cash flow. This demographic represents 75% of Afterpay’s user base according to company data.
Understanding Afterpay’s Acquisition by Block (Square)
Block Inc’s acquisition of Afterpay marked a significant shift in the financial technology world. The merger combined Block’s payment processing capabilities with Afterpay’s buy now pay later services.
The Square-Afterpay Merger Deal
Block Inc completed its $29 billion acquisition of Afterpay on January 31, 2022. The all stock transaction valued Afterpay shares at 0.375 shares of Square stock per Afterpay share. The deal integrated Afterpay’s buy now pay later platform into Block’s Cash App ecosystem, expanding payment options for 70 million active users.
| Merger Details | Value |
|---|---|
| Deal Value | $29 billion |
| Share Exchange Ratio | 0.375 SQ:APT |
| Completion Date | January 31, 2022 |
| Cash App Users | 70 million |
- Stock Delisting
- Afterpay shares ceased trading on the Australian Securities Exchange
- All existing shares converted to Block shares at the merger ratio
- Individual Afterpay stock certificates became invalid
- Investment Access
- Investors gained exposure through Block Inc stock (NYSE: SQ)
- Direct Afterpay stock purchases became unavailable
- Block shares reflect combined company performance
- Trading Options
- Buy Block shares through any major stock broker
- Trade Block stock options on US exchanges
- Purchase Block ADRs on international markets
How to Invest in Afterpay Through Block Stock
Block stock (NYSE: SQ) trades on major exchanges, offering investors exposure to Afterpay’s BNPL services through multiple investment channels.
Buying Block (SQ) Stock on Major Exchanges
Block shares trade primarily on the New York Stock Exchange under ticker symbol SQ. Opening a brokerage account with platforms like Fidelity, Charles Schwab or E*TRADE enables direct stock purchases. Here are the key steps:
- Create an account with an online broker
- Fund your account via bank transfer
- Place a market or limit order for SQ shares
- Monitor your investment through your broker’s platform
Trading hours run from 9:30 AM to 4:00 PM Eastern Time on business days. Most brokers offer commission free stock trades with minimum investments starting at one share.
- Exchange Traded Funds (ETFs)
- Fintech ETFs: ARKF, FINX
- Payment sector ETFs: IPAY, PSI
- Growth stock ETFs: VUG, IWF
- Stock Options
- Call options for bullish positions
- Put options for bearish positions
- Various expiration dates available
- American Depositary Receipts (ADRs)
- Trade Block shares on international exchanges
- Available through major foreign brokers
- Settlement in local currencies
| Investment Method | Minimum Investment | Trading Hours |
|---|---|---|
| Direct Stock | 1 share | 9:30 AM – 4:00 PM ET |
| ETFs | 1 share | 9:30 AM – 4:00 PM ET |
| Options | 100 shares | 9:30 AM – 4:00 PM ET |
| ADRs | Varies by market | Market dependent |
Benefits and Risks of Investing in Block Stock
Block stock offers exposure to multiple fintech segments including digital payments, cryptocurrency services, BNPL through Afterpay, and small business solutions.
Growth Potential and Market Position
Block maintains strong positioning in digital payment processing with Square and peer to peer payments via Cash App. The company processed $197 billion in gross payment volume in 2022. Its market penetration spans multiple high growth segments:
- Cash App reaches 70 million monthly active users across the US
- Square serves 40+ million businesses globally through point of sale systems
- Afterpay connects 16 million active shoppers to 100,000+ merchants
- Cryptocurrency trading generates $10 billion in annual Bitcoin revenue
Key Investment Considerations
Block stock performance correlates with several critical factors:
Revenue Drivers
| Segment | Revenue Contribution |
|---|---|
| Transaction Fees | 45% |
| Subscription Services | 22% |
| Bitcoin Trading | 20% |
| Hardware Sales | 13% |
- Cryptocurrency price volatility impacts trading revenue
- Increasing competition in digital payments from PayPal, Stripe, Apple Pay
- Economic downturns affect consumer spending and merchant activity
- Regulatory changes in financial services compliance requirements
- Technology infrastructure vulnerabilities to cyber threats
- Market Cap: $38.5 billion
- P/E Ratio: 62.4
- Revenue Growth: 25% year over year
- Gross Profit Margin: 35%
- Cash Reserves: $4.5 billion
Current Stock Performance and Market Analysis
Block Inc.’s stock price fluctuates based on several key performance indicators. The company’s shares traded between $51.34 and $83.96 in the past 52 weeks, indicating significant market volatility.
Key financial metrics for Block (NYSE: SQ) include:
| Metric | Value |
|---|---|
| Market Capitalization | $38.5 billion |
| P/E Ratio | 62.4 |
| Revenue Growth | 25% YoY |
| Gross Profit Margin | 35% |
| Cash Reserves | $4.5 billion |
| Daily Trading Volume | 12.5 million shares |
Technical analysis shows Block stock trading patterns:
- Support levels established at $55 with resistance at $80
- Moving averages indicate an upward trend over 50 days
- Relative Strength Index remains neutral at 52
- Trading volume increases during earnings announcements
Market sentiment responds to Block’s business segments:
- Cash App user growth reaches 70 million active customers
- Square payment processing volume tops $197 billion annually
- Afterpay integration boosts BNPL transaction values
- Bitcoin revenue contributes 40% of total revenue
- International expansion drives new market opportunities
Analyst coverage reflects mixed opinions on Block’s stock:
- 65% maintain buy ratings
- 25% suggest hold positions
- 10% recommend selling
- Price targets range from $65 to $95
- Consensus estimates project 20% revenue growth
- Federal Reserve interest rate policies
- Cryptocurrency market fluctuations
- Competition in digital payment space
- Regulatory changes in fintech sector
- Economic indicators impacting consumer spending
Conclusion
While you can’t directly purchase Afterpay stock anymore Block Inc.’s acquisition offers an excellent alternative for investors interested in the BNPL space. By buying Block (SQ) shares you’ll gain exposure to Afterpay’s growing business alongside Block’s diverse fintech ecosystem.
The integration of Afterpay into Block’s Cash App platform creates a powerful combination that serves millions of users worldwide. Whether you’re considering an investment through direct stock purchase ETFs or other trading options it’s crucial to research thoroughly and understand the risks involved.
As the fintech industry continues evolving Block’s position at the intersection of digital payments BNPL and cryptocurrency makes it an intriguing investment opportunity for those looking to capitalize on the future of financial technology.