Afterpay was founded in 2014 by Nick Molnar and Anthony Eisen in Sydney, Australia. It launched as one of the first modern buy-now-pay-later platforms, letting shoppers split purchases into four equal installments over six weeks with no interest charges.
The company grew rapidly across Australia, then expanded to the US, UK, Canada, and New Zealand. Afterpay’s model is straightforward: merchants pay a commission (typically 4-6% of the transaction), and consumers pay nothing extra as long as they make payments on time. Late fees exist but they’re capped.
In August 2021, Block (formerly Square) announced it was acquiring Afterpay for approximately $29 billion in an all-stock deal, making it one of the largest fintech acquisitions ever. The deal closed in January 2022. Under Block, Afterpay was integrated into the Cash App ecosystem, giving Cash App’s 55+ million users access to BNPL directly from the app.
Afterpay had over 20 million active customers and 100,000+ merchant partners at the time of acquisition. The service is especially popular with millennials and Gen Z shoppers who prefer installments over traditional credit cards.
Post-acquisition, Afterpay’s brand continues to operate independently in international markets. In the US and some regions, the Cash App integration is the primary distribution channel. The company’s original headquarters remain in Melbourne, with significant operations in San Francisco under Block’s umbrella.
