- Payments app Square to acquire Australian firm Afterpay in a $29 billion deal.
- The acquisition allows Square to accelerate its plans for the payment environment.
Crypto-friendly payments firm Square expands its competition with world-wide payments giants such as PayPal through acquiring a major Australian lending firm.
Moreover, Square made an announcement that the firm has stepped into a plan to acquire all the issued shares in fintech company Afterpay in a $29 billion deal. However, the transactions will depend on the closing price of the Square common share. It is also expected to be paid in all stock in Q1 2022.
More so, the acquisition allows Square to accelerate further its plans for the payment environment. As the company looks to collaborate Afterpay with Stellar and Cash App business units. In order to allow a ‘buy now, pay later’ (BNPL) service.
BNPL transactions enable customers to pay bills in a small part throughout a fixed time period. World’s huge financial firms like PayPal, Mastercard, Klarna, Citi, and many more pioneers.
As per the announcement, the collaboration allows small businesses to provide BNPL at checkout, enabling Afterpay users to manage their installment payments in Cash App directly. In order to enhance that, BNPL is enabled within the app directly. The collaboration will indicate the new milestone for Square in reaching the developing consumer demand for moving away from traditional credit.
Dorsey’s View
Square co-founder and CEO Dorsey mentioned that the acquisition will help the firms to deliver on their shared goal to make the financial system more accessible, fair, and inclusive.
Dorsey Adds,
“Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,”
With this, Afterpay’s Co-Founder and Senior Executives will jon Sqaure and help leading Afterpay’s merchant and consumer businesses inside the Square’s Seller and Cash App ecosystems. More so, Square also promised to provide a secondary listing on the Australian Securities Exchange (ASX). This will allow Afterpay shareholders to trade Squares share through CHESS depositary interests on the ASX. All-in-all, the Cash App has generated a gross income of $546 million, raising 94%.