Block, Inc. (NYSE: XYZ) has announced it has provided access to over $200 billion in global lending across its credit products, including Cash App Borrow, Afterpay, and Square Loans, demonstrating its model for inclusive lending through novel underwriting technology and customer-focused product designs.
Block attributes this milestone to its proprietary underwriting technology and customer-focused product designs, noting that inclusive lending and responsible risk management are foundational to its credit strategy. Since 2013, the company has maintained stable loss rates across all its lending products, even amid significant growth and changing macroeconomic environments.
The company’s lending initiatives come at a time when traditional credit systems face scrutiny, with approximately 100 million Americans reportedly excluded from affordable credit due to outdated scoring models. This situation disproportionately affects younger generations, with 48% of Gen Z without credit cards and 68% expressing anxiety about credit card bills.
Block’s credit infrastructure utilizes near real-time behavioral data, such as earning, saving, spending, and repayment patterns, in contrast to traditional delayed credit bureau reports. For instance, Cash App analyzes data from its 58 million monthly active users to generate an internal Cash App Score for each customer. This method has enabled 38% more Cash App Borrow loan approvals at loss rates comparable to those achieved with traditional credit underwriting methods.
Brian Boates, Risk Lead at Block, commented on this approach, stating, “Traditional lenders use scale to be more selective; we use it to be more inclusive while managing risk responsibly. Our near real-time underwriting models don’t just expand access—they create better outcomes for both customers and our business. This isn’t theoretical; we’ve proven it by scaling to $200 billion in lending while maintaining consistent loss rates.”
The $200 billion lending figure spans three distinct Block products. Cash App Borrow provides short-term loans, averaging 21 days, and reports 97% repayment rates, with 70% of borrowers having FICO scores below 580. Afterpay, a buy now, pay later service, sees 96% of installments paid on time and 98% of purchases incurring no late fees. Square Loans offers small business financing with less than 3% loss rates, with 58% of loans directed to women-owned businesses and 34% to minority-owned businesses.
Square Financial Services, Inc. (SFS), Block’s in-house bank, has originated over $20 billion in loans for Square Loans and Cash App Borrow since its inception. SFS’s share of Block’s total lending originations is increasing, and it began originating all Cash App Borrow loans in 2025. This integration positions Block with a fully integrated in-house banking operation.
In an effort to enhance credit transparency, Block recently completed a pilot program providing select customers visibility into their Cash App Score, a real-time measure of financial health used for Cash App Borrow eligibility. The pilot allowed customers to understand factors influencing their score and take actions to improve it.
Internal testing indicates that Cash App’s underwriting models offer stronger predictive accuracy than traditional credit scoring across revolving credit and longer-term loans, including auto, student, and mortgage loans. Analysis suggests these models could approve 30% more auto loans at identical loss rates compared to conventional methods. Block intends to expand access within its lending suite and explore strategic partnerships to help customers qualify for external products using the Cash App Score.
Amidst American household debt reaching $18.59 trillion and credit card balances at historic highs, Block aims to provide a responsible alternative to revolving debt through its transparent, fixed-term credit products. The company’s teams continue to address fundamental shortcomings in traditional credit systems that often favor lengthy credit histories and perpetuate systemic biases.
