Square to acquire Australian BNPL provider Afterpay

Monday 2 August 2021 09:27 CET | News

US-based payments app Square has announced its plans to acquire Australia-based Buy Now, Pay Later operator Afterpay in an all-stock deal that values Afterpay at about USD 29 billion.

The deal introduces Afterpay’s service, which allows users to stagger the cost of their purchases over interest-free instalments, to US consumers and the small businesses that process their credit card transactions on the Square app. It will also help the Square further expand in Australia, its second-biggest market after the US, according to The New York Times.

Afterpay works with more than 16 million consumers and nearly 100,000 merchants globally. As part of the deal, its founders, Anthony Eisen and Nick Molnar, will join Square. Square will also appoint one Afterpay director to its board once the deal closes.

The deal still needs shareholder and regulatory approval. The Justice Department has scrutinized deals in the financial technology industry recently, suing to block Visa’s planned USD 5.3 billion deal to acquire the upstart firm Plaid, the Times continues to explain. Square announced it was acquiring a majority stake in Jay-Z’s streaming service Tidal for USD 297 million, in March 2021. 

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Keywords: Square, Afterpay, acquisition, BNPL, online payments
Categories: Payments & Commerce
Countries: United States
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