OAKLAND, Calif.–Block is reporting that is has now provided more than $200 billion in credit to customers across its Cash App Borrow, Afterpay and Square Loans products, many of whom come from underserved and low-income markets credit unions also seek to serve.
The company said it has extended credit to Americans who may be excluded from affordable credit by traditional credit systems, and it has seen strong repayment behavior by these customers.
“Through this work, Block is proving that with the right technology, inclusive lending and responsible risk management aren’t opposing forces; rather, they’re the foundation of sustainable credit for the next generation,” the company said in the statement.
The Menu
According to the company, its loan offerings include:
- Cash App Borrow, which offers short-term loans averaging 21 days and serves a customer base in which 70% of borrowers have FICO scores below 580, which has seen 97% repayment rates.
- Afterpay, a buy now, pay later (BNPL) product, which has seen 96% of installments paid on time.
- Square Loans, a small business lending product, has less than 3% loss rates.
For each product, Block said it uses near real-time behavioral data rather than credit bureau reports, according to the release.
How it Works
In its statement, Block offered as an example its internal Cash App Score. It said for each customer is developed from customers’ earning, saving, spending and repayment patterns, per the release.
“The company’s integrated ecosystem creates unique advantages that pure-play credit companies and traditional banks cannot replicate,” Block said in its statement. “When customers use Cash App for their paycheck, spending, savings and investments, Block develops a comprehensive financial picture that enables better underwriting and customer experience than fragmented legacy systems.”
