Square buys Afterpay in one installment
Future. Square is acquiring the “buy now, pay later” company Afterpay for $29 billion. Coupled with its hefty investments into Bitcoin (including a hardware wallet and banking service), Square may be making a case for why the company will be at the center of the economy of the future.
Buy now, profit later
Square wants to get into the “buy now, pay later” (BNPL) business right now with its most recent acquisition.
- Jack Dorsey’s fintech company Square is buying leading BNPL company Afterpay for $29 billion in stock.
- The deal is expected to close in early 2022.
The plan is to combine the services of Square’s Cash App and Seller services with the BNPL capability of Afterpay “to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands,” according to Dorsey.
The acquisition makes a lot of sense for Square. It puts the company right into the thick of BNPL space, which is heating up thanks to companies such as startups Klarna and Affirm, and big financial heavyweights such as PayPal. Apple is also planning to throw its hat in the ring with Apple Pay Later.
Additionally, while Square is very popular in the U.S. (85% of its transaction volume), the Australia-based Afterpay gives Square a more global footprint. More than half of Afterpay’s business is done outside of the U.S.