Square will acquire Afterpay, Australian will buy now, pay after platform for $29 billion


Square – the financial payments company known for its popular Cash app – Said it plans to merge Afterpay with your existing apps. It will give “even the smallest merchants” the ability to pay for the latter services at checkout, among other offerings.

The acquisition is Square’s largest acquisition to date.

was afterpay established in 2015 and launched in the US in 2018. It is best known for Buy Now, Pay Later – a service that allows customers to split retail and online payments into installments.
Such offerings have grown in popularity with the rapid shift to online shopping to reach younger consumers and in the pandemic. payment analyst pointed to the trend Particularly popular among Millennials and Generation Z, who are wary of taking on credit card debt.

Meanwhile, Afterpay is one of the most prominent companies in the sector. Square says 100,000 merchants use the platform globally, and it has over 16 million customers.

Square said it expects the all-stock deal to close in the first quarter of 2022. The acquisition is not only Square’s biggest acquisition to date, but it is also the largest acquisition of an Australian company to date – according to data from Refinitiv.

Dorsey, who also serves as CEO of Square of twitter (TWTR), said Square and Afterpay have a “common purpose”.

“We have built our business to make the financial system more fair, accessible and inclusive, and Afterpay has built a trusted brand along those principles,” he said. in a statement. “Together, we can better connect our Cash App and vendor ecosystem to deliver even more engaging products and services for merchants and consumers, putting the power back in their hands.”

Afterpay co-CEOs Anthony Eisen and Nick Molnar said the move “marks a significant recognition of the Australian technology sector as domestic innovation continues to be shared more widely around the world.”

“By combining with Square, we will further accelerate our growth in the US and globally, provide access to a new class of in-person merchant, and provide our merchants and consumers with a broad platform of new and valuable capabilities and services,” he said in a statement.

Square has been in acquisition mode this year. it back in march Jay-Z’s streaming music service Tidal. agreed to acquire a majority stake in for $297 million. and in July it Acquired Frontline Employees Platform CrewHowever, the details of purchase were not available.

— Nathaniel Meyerson and Diksha Madhok contributed to this report.

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