Acceding to the latest news, Square is planning to acquire Australian company Afterpay which is offering a “buy now, pay later” service. This service lets you avail goods and services and lets you pay in interest-free instalments for $29 billion in stock. This is the second big news from Square which previously came into news for announcing a Bitcoin business unit and for buying a majority stake in the Tidal streaming service. All the news came this year.
Nowadays, across the web, “Buy now, pay later” services like those offered by Afterpay, Affirm, and Klarna have become increasingly popular. Square is not the only payments giant jumping into the ring because Apple is reportedly working on a similar service of its own called ‘Apple Pay Later’.
The transaction is expected to complete by the first quarter of 2022. As of now, Afterpay already serves more than 16 million customers and it has nearly 100,000 merchants across the world. When the acquisition is completed, Square will appoint an Afterpay director at Square’s board.
Square co-founder and CEO Jack Dorsey said in a statement, “Square and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles. 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.”