Afterpay is set to transform the in-store shopping experience in the U.S. through its integration with Block Inc.'s ecosystem, particularly leveraging the large user base of the Cash App Card. While buy-now-pay-later (BNPL) services have predominantly been used for online transactions, there's a growing trend towards using these services for face-to-face purchases. Afterpay's success in Australia, where in-store BNPL transactions constitute over 30% of its business, suggests significant growth potential in the U.S. market. The utilization of card-driven BNPL offerings, such as those enabled through the Cash App Card, presents a new frontier for Afterpay to facilitate more diverse purchasing scenarios beyond traditional online shopping, including dining and healthcare expenses. This expansion is likely to cater to a new generation of consumers who prefer managing their finances through debit rather than credit, aligning with their spending habits and financial management preferences.
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