Buy Now Pay Later services are all the rage in the era of the pandemic and Square wants to get in. The digital payments company, founded by Twitter CEO Jack Dorsey, has acquired BNPL’s Australian company Afterpay for $ 29 million. was announced on sunday.
Afterpay allows you to buy a product online or in store and pay for it in four installments. One quarter is paid in advance and subsequent quarters are paid every two weeks. The service comes interest free, as Afterpay makes money from retailers who pay to appear on the service, although there are late fees.
Afterpay is one of many buy now pay later companies that have flourished since the COVID-19 pandemic accelerated the trend toward online shopping, along with companies like Klarna and Affirm. PayPal jumped on the bandwagon last September expects the sector to grow 10-15 times by 2025.. CB Insights, a research company,
“Square and Afterpay have a shared purpose,” Dorsey said in a statement. “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 attractive products and services to merchants and consumers, putting the power back in their hands.”
Square last made headlines in July when it announced, in which he is a great investor. The new business will help developers design decentralized financial products. Or, in Dorsey’s words, “an open development platform with the sole purpose of facilitating the creation of decentralized, non-custodial, permissionless financial services.”
Buying Square will allow you more exposure to Australia, the company’s second largest market. Afterpay has 16 million users worldwide, with more than 100,000 merchants registered to its service.
The deal is expected to close in early 2022, Square said, and will see one of Afterpay’s executives be appointed to Square’s board.