Block's Afterpay Expands Partnerships: Will it Boost Holiday Sales?

Block, Inc.’s XYZ wholly owned subsidiary, Afterpay, announced new partnerships ahead of the holiday shopping season. These partnerships offer consumers greater payment flexibility and meet diverse needs across multiple categories.

In the Fashion & Apparel space, Afterpay partnered with Jenni Kayne, Thursday Boots, Diesel, Von Dutch, Christy Dawn, SP5DER Worldwide, Coolibar and Adrianna Papell. In the Footwear & Outdoors segment, it teams up with Hibbett, Tecovas and Coolibar. In Jewelry & Accessories category, Afterpay joins hands with Effy Jewelry and The GLD Shop. In the Home & Creative category, Afterpay adds Z Gallerie, The Woobles, art.com and All Posters, while in the Beauty segment, it considered Caliray Beauty and Noyz.

Many of these brands will offer Afterpay both online and in select retail locations, giving customers flexible payment options across all shopping channels. The inclusion of these brands highlights Afterpay's continued growth across major consumer categories, enabling shoppers to access their favourite brands in more ways while managing their budgets responsibly.

Flexible payment solutions have become essential for managing budgets during the holiday season. Recent Afterpay research shows that 44% of financially stressed consumers plan to use Buy Now, Pay Later (BNPL) services for their holiday shopping this year. Another study finds 63% of Gen Z consumers have shifted from credit cards to BNPL for its transparency.

Afterpay’s “Pay in 4” service lets customers split purchases into four interest-free installments due every two weeks, while “Pay Monthly” helps manage bigger purchases over time. Afterpay upholds strong consumer protections, with 98% of traditional purchases carrying no late fees and 95% of installments paid on time as of the third quarter of 2025.

What Are PayPal and Affirm Doing in the BNPL Space?

PayPal’s PYPL BNPL solution is available almost everywhere PayPal is used in its largest markets. Last month, PayPal expanded its BNPL offering in Canada by launching PayPal “Pay in 4,” a no-fee solution. In September 2025, PYPL signed a two-year agreement with Blue Owl Capital, where funds managed by Blue Owl will purchase about $7 billion of PayPal’s U.S. “Pay in 4” BNPL receivables.

Affirm Holdings, Inc. AFRM is expanding steadily in the BNPL space. This month, Affirm partnered with Pacsun to give shoppers a simple, transparent way to pay over time. In October 2025, Affirm and New York Life expanded their partnership. New York Life will purchase AFRM’s installment loans, between the announcement date and December 2026, with up to $750 million outstanding.

XYZ’s Price Performance, Valuation & Estimates

Shares of Block have declined 27.6% year to date, underperforming both the broader industry and the S&P 500 Index.

From a valuation standpoint, Block shares are overvalued, as suggested by the Value Score of C.

Block’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for full-year 2025 EPS has been revised downward over the past month. The Zacks Consensus Estimate for 2025 EPS suggests a 28.2% decrease year over year.

Block currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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