“I don’t often post personal updates on LinkedIn, but wanted to share that after 13 years, I’m stepping away from Afterpay and Block to focus on my family,” Molnar, global head of sales and marketing at Block, wrote on the social media platform Saturday (Nov. 14).
Molnar said he was “particularly proud of the unique way that Block lends money,” arguing that its trust in consumer/small business borrowers is the opposite of the traditional banking sector.
“Before us, no lending product disabled someone’s account when they went late, as this would break their economic model,” he wrote. “It is for this reason that Block lent ~$19b last quarter and are one of the largest lenders to the next generation consumer in the world.”
He added that he was “incredibly proud of the work we’ve done to help export Australian technology,” and “excited by the strength of Australian entrepreneurs executing the same path. I hope to see many more success stories make it to the global stage, just like we did.”
Block acquired Afterpay for $29 billion in 2022. Earlier this year, the company announced widespread job cuts amid an increased focus on artificial intelligence.
Recent PYMNTS Intelligence research examines Afterpay’s place in the buy now, pay later (BNPL) world, finding that the company and its rivals serve different audiences.
According to the report “Beyond Pay in 4: How BNPL Providers Compete for First Choice,” Afterpay’s “clearest distinction is credit profile,” reaching 58% of subprime BNPL users, compared with a 48% overall reach.
Affirm reaches 49% of subprime users, more or less in line with its overall reach of 50%. Klarna reaches 35% of the subprime user base, with PayPal Pay Later reaching 30% of that group.
On the other end of the income scale, Klarna reaches 55% of BNPL users earning at least $150,000, versus 47% overall. Affirm and Afterpay each reach 52% of higher-income consumers, with PayPal Pay Later reaching 44%.
For banks and FinTechs, the report said, the findings make the case against viewing BNPL as “one standard product.” Factors such as limits, terms, pricing and underwriting determine who uses the product and when. A bank can compete in a specific credit space, like short-term cash flow support, higher-ticket financing or a merchant-specific offer.
“Payments companies and merchants should plan for multi-provider behavior,” the report added. “Reach does not equal exclusivity. Offering more than one option may cover a wider range of ticket sizes and customer profiles. Providers can earn first-choice status through clear terms, useful limits, broad acceptance and a consistent repayment experience.”
