Square is expanding its online payments options for consumers. The financial tech firm announced today its plan to acquire Afterpay, a "buy now, pay later" (BNPL) platform for $29 billion.
The planned acquisition will give Square a huge chunk in the digital payments space, if approved, as well as expand access for users. For one, Square will take over Afterpay's platform that lets customers pay for their purchases in installments without interest. This service will then be integrated into its seller and Cash App ecosystems.
Afterpay consumers will be able to manage their installment payments directly in Cash App, while Square customers can explore a wide array of merchants that offer BNPL options within the app. Even small merchants can offer staggered payment options at checkout.
Jack Dorsey, Co-Founder and CEO of Square, said:
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.
More than 16 million customers are using Afterpay and nearly 100,000 merchants worldwide are using the platform. Square, on the other hand, will help Afterpay expand its reach through its growing customer base of more than 70 million people who use Cash App for various transactions.
The deal is still subject to customary closing conditions. But once the acquisition is completed, Afterpay’s co-founders and co-CEOs will join Square. The deal is expected to close in the first quarter of calendar year 2022.