Latest news with #CashAppAfterpay
Yahoo
14-06-2025
- Business
- Yahoo
Block vs. Upstart: Which Fintech Stock Has More Upside in 2025?
The fintech sector is evolving fast, driven by innovation in digital payments, credit underwriting, and user experience. Two major players — Block, Inc. XYZ and Upstart Holdings UPST — stand out for their disruptive business models and strategic growth initiatives. Block leans into a multi-vertical payments ecosystem through Square and Cash App, while Upstart is reinventing consumer lending using artificial intelligence. As both companies tackle economic headwinds and rising competition, investors are wondering which stock is better positioned for 2025. Below, we explore the merits and limitations of each to help identify the stronger long-term XYZ or UPST, which of these Fintech stocks has the greater upside potential? Let's explore. Block continues to grow its comprehensive fintech platform, with its Square and Cash App ecosystems offering end-to-end solutions across payments, commerce, and banking. The latest innovations like the Square Point of Sale app and the rollout of 'Cash App Afterpay' showcase its commitment to user-centric design and revenue diversification. Block's omnichannel seller tools are helping businesses streamline operations, and its FDIC-approved lending capabilities add depth to its offerings. Cash App is also targeting younger users and families, while the Proto division is eyeing new frontiers in Bitcoin mining hardware, potentially unlocking future growth these innovations, Block faces several headwinds. Macroeconomic uncertainty, including tariffs and weaker discretionary spending in categories like travel and media, is limiting Cash App Card activity. Its gross profit is forecasted to improve later in the year, but the near-term softness is noticeable. Additionally, the company is battling intense competition from PayPal, Shopify, and newer fintech upstarts. While Block has solid momentum and diversified revenue streams, its performance remains sensitive to shifts in consumer behavior and macro conditions, making 2025 a year that could be shaped more by external variables than internal progress. Upstart is gaining traction as a differentiated player in lending by replacing FICO scores with AI-driven credit modeling. Its underwriting engine, which automates 92% of loans, provides not only efficiency but also a better borrower experience. The company's strength lies in its expanding loan portfolio, which now includes auto loans, HELOCs, and small-dollar loans. These categories posted double-digit sequential growth in the first quarter of 2025, reinforcing the company's operational execution and technological AI engine is also evolving. Model 19 introduces payment transition modeling, enhancing its ability to predict borrower behavior. These model upgrades are driving stronger conversion rates, which have risen from 14% to 19% in just a year. Financially, Upstart reported a 67% revenue increase year over year and flipped to profitability with a 30-cent non-GAAP EPS in Q1 2025. Even more impressive is its growing reliance on super-prime borrowers, which reduces risk and improves funding consistency. However, challenges remain — elevated interest rates and a dip in contribution margins are notable — but Upstart's rapid vertical expansion, smarter underwriting, and visible operating leverage suggest a fintech stock on the cusp of durable scale. The Zacks Consensus Estimate for Block's 2025 sales and EPS implies year-over-year growth of 3.55% and a decline of 25.22%, respectively. EPS estimates for 2025 and 2026 have been southbound over the past 30 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)For Block: Image Source: Zacks Investment Research The Zacks Consensus Estimate for Upstart's 2025 sales implies year-over-year growth of 58.8%. What is also encouraging is that EPS estimates for 2025 have been trending northward over the past 60 Upstart: Image Source: Zacks Investment Research Year to date, Upstart shares have dropped 11.4%, which is less than the 24.9% decline in the shares of Block. XYZ and UPST Stock's Performance Image Source: Zacks Investment Research Despite the price plunge, XYZ is trading at a forward 12-month Price/Sales of 1.51X, ahead of its one-year median of 1.54X. Meanwhile, UPST is presently trading at a forward 12-month Price/Sales of 4.56X, at a premium to XYZ, but below its one-year median of 5.25X. XYZ and UPST Valuation Image Source: Zacks Investment Research While Block has a proven ecosystem and deep roots in payments, its near-term trajectory is hindered by soft consumer demand and intense competition. Upstart, on the other hand, is showing clearer operating leverage and expanding intelligently into new credit categories with improving AI and funding structures. With strong revenue momentum and rising profitability, Upstart emerges as the fintech with greater upside potential in 2025 for long-term investors seeking innovation-led Upstart has a Zacks Rank #3 (Hold), making the stock a stronger pick compared with Block, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Hypebeast
30-05-2025
- Business
- Hypebeast
Unboxing: Cash App Afterpay Dropshop Taps Linden Is Enough for the Ultimate Travel Tote
Whether planning your next summer excursion or enjoying a low-key staycation, one accessory will simplify your travels and add a touch of sophistication to your wardrobe rotation: a holy grail tote bag. Soaking up the warm weather and good vibes, Cash App Afterpay's The Dropshop has partnered withLinden Is Enough, a brand celebrated for its heirloom leather goods, to develop a travel tote to debut exclusively onHBX. Earlier this year, Afterpay rebranded to Cash App Afterpay – it's still the same great pay over time service, just with a fresh new look. The Dropshop is a shopping offer that provides access to artist-led collaborations and limited-edition merchandise, including footwear, apparel and specialty items launched by notable rising brands and some of today's most exciting independent creators. Inspired by the season of travel, Afterpay spotlightsLinden Is Enough, a small business that started on Etsy before expanding into a global online retailer. Founded by Daniel Caltik and Mariana Leite during their university studies, The Edinburgh-based brand adopts Moroccan leather-craft techniques, creating durable and undeniably chic leather purses, tote bags, briefcases and more — all designed to weather the ups and downs of everyday life. Arriving in black and made from supple, shiny, full-grain leather, the Linden Is Enough x Cash App Afterpay Maxi Tote features a roomy main compartment with an unlined, suede interior, offering ample storage. A green hanging inner pocket and oversized outer slip provide easy access, with wide shoulder straps for long-wearing comfort and balanced weight distribution. Effortlessly timeless with a vegetable-tanned leather construction that's buttery-soft yet hardwearing, it's a versatile silhouette meant to last a lifetime of adventures — and one of Linden's best-selling styles. A leather paper airplane bag charm accompanies the piece, adding another zesty pop of green to contrast the black exterior. In the latestHypemapsinstallment, Afterpay tapped DJ/modelYazmine Rosarioto traverse her favorite thrifting and nighttime spots in Miami, Florida, sporting the refined handbag during her eclectic travels. The limited-edition item retails for $340 USD and is exclusively available onHBX, starting today. See the bag in action in the video and galleries above. Fashion lovers can find new designers and brands through The Dropshop. See more leather staples from Linden Is Enoughhere.
Business Wire
21-05-2025
- Business
- Business Wire
Just in Time for Spring, Cash App Afterpay Expands Merchant Network to Empower Smarter Spending
DISTRIBUTED-WORK-MODEL/SAN FRANCISCO--(BUSINESS WIRE)--Cash App Afterpay announces a fresh wave of new brands added to its network, empowering its U.S. customers with flexible payment options that can help manage their spending without compromising their lifestyle. This season's new partnerships include Aviator Nation, Brandon Blackwood, Double D Ranchwear, Fly Fairly, Huckberry, Mejuri, Nuuds, Parke, PetMeds, Plug, Rainbow Shops, Rugs Direct, StitchFix, Turo, and many more. A recent report reveals 63% of Gen Z have moved away from credit cards in favor of alternative payments such as Buy Now, Pay Later (BNPL) as hidden fees, high interest rates, and financial stress drive demand for more transparent alternatives. [1] With this new wave of spring partnerships, customers can now shop responsibly from Afterpay's growing list of new merchants across lifestyle, home, experiences, wellness, and fashion categories. 'Our customers are seeking out more ways to shop that align with their financial goals, especially in today's climate,' said Alex Fisher, Head of Revenue, North America, Cash App Commerce. 'The ability to offer pay-over-time solutions not only empowers them to spend responsibly, but it also supports our merchant partners by driving incremental sales and strong customer loyalty.' In a time when economic uncertainty continues to shape household budgets, Afterpay remains committed to providing tools that help next-generation consumers spend within their means. Built on a foundation of financial inclusion, Afterpay is not just an alternative to credit, it's a modern way to shop smarter. As of Q4 2024, Block reports 98% of Afterpay purchases incurred no late fees, and 95% of installments were paid on time. Download the Afterpay app on iOS or Android to explore all available merchants. About Cash App Afterpay Cash App Afterpay is transforming the way we pay by allowing eligible shoppers to buy products immediately and pay over time - enabling simple, transparent and responsible spending. We are on a mission to power an economy in which everyone wins. Afterpay is offered by thousands of the world's favorite retailers and used by millions of active global customers. Afterpay is currently available in Australia, Canada, New Zealand, the United States and the United Kingdom, where it is known as Clearpay. Afterpay is a wholly owned subsidiary of Block, Inc. (NYSE: XYZ).
Yahoo
13-05-2025
- Business
- Yahoo
MercadoLibre vs. Block: Which Fintech-Driven Stock Has More Upside?
MercadoLibre MELI and Block XYZ are well-known names in the growing fintech space. Both companies have gained strong attention for their digital payment solutions. While MercadoLibre is a major player in Latin America through its Mercado Pago platform, Block is known for its Cash App and Square in the United the Mordor Intelligence report, the fintech market size is estimated at $356.73 billion in 2025. It is expected to witness a CAGR of greater than 14% over the forecast period 2025-2030, reaching $686.89 billion by 2030. Both MELI and XYZ are well-positioned to take advantage of this strong growth in the fintech take a closer look at the fundamentals of the two stocks to determine which one has the greater upside potential. MercadoLibre's fintech arm, Mercado Pago, continues to be a major growth engine in the first quarter of 2025, delivering strong performance across multiple fronts. Monthly active users surged past 64 million, growing at a rate of more than 30% year over year. This reflects not only robust user acquisition but also increased engagement across its company's credit portfolio expanded 75% year over year, while maintaining healthy asset quality. In Brazil, credit card first payment defaults reached an all-time low, attributed to improved scoring models and a shift toward higher-quality borrowers. Argentina also stood out, with the credit portfolio growing fourfold in U.S. dollar terms and delivering increased profitability, supported by macroeconomic Pago has been integrated more tightly with the broader MercadoLibre ecosystem, undergoing a visual rebrand and UX overhaul to mirror a more specialized digital banking further strengthen its deposit base, Mercado Pago offered an attractive 120% of Brazil's CDI rate through targeted loyalty-linked programs. To receive this rate, users must meet specific conditions, including being part of the loyalty program, placing funds into a special pot, and adhering to a contribution limit of a few thousand Brazilian Reals. This initiative helped boost awareness and reinforced Mercado Pago's positioning as a leading digital bank in the region. Block's fintech business, led by Cash App, showed strength in the first quarter of 2025 despite macroeconomic headwinds. Cash App's gross profit rose 10% year over year, and gross profit per monthly transacting active user reached $81. The company hit a key milestone in March with FDIC approval to use its in-house bank, Square Financial Services, to issue consumer loans. This move is expected to significantly improve unit economics and expand Cash App Borrow's reach to more users across the United States. The retroactive BNPL feature, Cash App Afterpay, launched in February, also saw strong early also maintained healthy underwriting metrics for Borrow, with loan durations under 30 days and consistent repayment rates. The company emphasized confidence in the company's ability to manage risk dynamically using machine learning models that respond to real-time data. The Cash App Borrow expansion is strategically tied to its banking offerings, especially direct Cash App's gross profit came in below internal expectations due to weaker-than-expected inflows and discretionary spending during tax season. Spending categories like travel and media saw notable pullbacks. The company attributed part of this softness to a changing macro environment and revised full-year guidance accordingly, including more caution in the outlook. Block now expects 12% gross profit growth for 2025, amounting to approximately $9.96 billion. The guidance is more conservative than usual. Despite strategic product rollouts and credit expansion, Block is still navigating slower-than-anticipated consumer spending behaviour, which has affected growth momentum. While long-term fundamentals remain intact, near-term performance remains sensitive to macroeconomic trends and evolving consumer sentiment. Performance metrics strengthen Mercadolibre's case. Year to date, shares of MELI have rallied 47.2%, while XYZ shares have plunged 35.3%. MELI's performance has been fueled by two strong earnings reports in a row, which came out to be better than expected. On the other hand, a challenging macroeconomic environment with the growing risk of a recession due to higher tariffs has hurt Block shares. Image Source: Zacks Investment Research In terms of Price/Cash Flow, Block shares currently trade at 25.87X, higher than MELI's 17.07X. This makes MELI significantly more attractive for a high-growth stock. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MELI's 2025 earnings is pegged at $47.92 per share, which has been revised upward by 1.7% over the past 30 days, indicating a 27.14% increase year over year. The consensus estimate for 2025 revenues is pinned at $26.53 billion, suggesting year-over-year growth of 27.67%. MercadoLibre, Inc. price-consensus-chart | MercadoLibre, Inc. Quote The Zacks Consensus Estimate for XYZ's 2025 earnings is pegged at $2.72 per share, which has been revised downward by 30.4% over the past 30 days, indicating a 19.29% decrease year over year. The consensus estimate for 2025 revenues is pinned at $24.98 billion, suggesting year-over-year growth of 3.54%. Block, Inc. price-consensus-chart | Block, Inc. Quote MercadoLibre continues to impress with rapid fintech adoption across Latin America. In the first quarter of 2025, strong credit growth, rising monthly active users, and robust profitability drove investor confidence. Meanwhile, a disciplined cost structure and solid performance from Mercado Pago have kept momentum on the other hand, faces near-term challenges. While Cash App Borrow expansion and BNPL integrations show promise, macroeconomic uncertainty and weaker-than-expected first-quarter performance have forced the company to lower guidance. As MercadoLibre continues performing well, Block remains under pressure as it struggles to regain footing amid cautious consumer behaviour and valuation MELI has a Zacks Rank #3 (Hold), making the stock a stronger pick compared with XYZ, which has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MercadoLibre, Inc. (MELI) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
24-04-2025
- Business
- Forbes
Why Gen Z Is Breaking Up With Credit Cards
Woman at cafe making mobile payment getty According to new research from Cash App Afterpay, more than half of Gen Z say credit cards feel outdated, anxiety-inducing, and incompatible with how they want to manage their money. Unlike previous generations who saw credit cards as a rite of passage or a symbol of financial freedom, Gen Z is redefining what financial empowerment looks like—and credit cards don't make the cut. 'Credit cards give Gen Z the 'ick'—not just because of high interest rates and confusing terms, but because they feel outdated and anxiety-inducing,' said Lindsay Bryan-Podvin, Cash App Afterpay's Financial Therapist. 'Credit cards clash with how Gen Z wants to manage money. They want clarity, structure, and control in real-time, which is why they're embracing alternative tools like debit cards and BNPL that offer greater transparency, flexibility, and speed for responsible spending and managing their cash flow.' Credit cards also feel cumbersome. 'For a generation used to getting things with the tap of a button, having to go through the tediousness of applying for a credit card and then waiting for it to arrive isn't as integrated and user-friendly as BNPL,' Bryan-Podvin added. Charlotte Principato, a financial services analyst at Morning Consult, echoed these sentiments. 'Gen Zers are entering adulthood without being bombarded by credit card offers the way millennials were, with a heightened understanding of the dangers of credit card debt after seeing its impact on older generations,' she said in an interview with Forget bubble baths and yoga—Gen Z is bringing financial wellness into the self-care conversation. They're prioritizing tools that help them stay mentally and financially balanced, with ease and autonomy at the center. 'Gen Z is redefining self-care, and extending those values to include financial wellness,' said Bryan-Podvin. 'They're prioritizing payment methods that support ease, autonomy, and mental well-being. Debit cards have become their go-to, with 68% preferring them (and BNPL options) over credit. There's greater peace of mind with clarity, and no fine print or surprise interest. That's also why 90% of Afterpay customers link their debit cards for installment payments—it helps them manage cash flow without added stress.' Gen Z came of age during economic chaos—witnessing the aftermath of the Great Recession, watching parents and older millennials wrestle with credit card debt, and now navigating inflation and record-high living costs. 'Gen Z is entering adulthood during a time of economic uncertainty, inflation, and rising living costs,' said Bryan-Podvin. 'They're more cautious and financially aware from seeing past generations struggle with debt and the Great Recession, and are far more skeptical of tools that don't serve them. Our survey found that 63% of Gen Z have already walked away from credit cards entirely. This isn't just a shift but a generational reset, making it clear that credit doesn't align with their reality or their values.' Here's the bottom line: Gen Z doesn't see credit—they see debt. 'For Gen Z, using a credit card can feel like spending money they don't actually have. In fact, 70% of adults say credit cards give them that exact feeling,' Bryan-Podvin explained. 'Credit cards are built to make spending feel easy; however, too easy can be dangerous. One of my financial therapy clients once reframed their credit card as a 'debt card,' and suddenly became way more mindful of their habits. That simple mindset shift can be a game changer, and it's one Gen Z is making in real time.' As this generation continues to influence market trends, financial institutions may need to adapt to meet their evolving preferences—because when it comes to credit cards, Gen Z isn't just uninterested. They're actively opting out.
