Buy now, pay later

Square and Twitter’s Jack Dorsey will purchase a fintech company Afterpay for $29 billion in the biggest blockbuster all-stock deal in Australia, rocking the fintech world.

Afterpay lets mostly young shoppers pay in four interest-free installments over time and pay a fee if they miss an automated payment. Its 16 million customers,especially younger buyers, will manage installment payments through the app.

PayPal, in competition to other online processors, introduced its own service in May, offering a nonprofit discount for online payment. American Express has been considering a “buy now, pay later” method, targeting a whole range of demographics. Apple Inc. has been developing a similar service that would let merchants use installment payments on Apple Pay.

The San Francisco-based payments company Square will integrate Afterpay into both its seller and Cash App ecosystems as a “powerful growth tool” for Square’s core seller business. Square announced its second-quarter results on Sunday.

Expanding further into the booming installment loan market.

Buy now pay later services have flourished since the COVID-19 pandemic began.

The deal is expected to close in early 2022, Square said, and will appoint one of Afterpay's executives to Square's board. The Afterpay co-founders, Anthony Eisen and Nick Molnar, will each be paid $2.7 billion in Square stock for their Afterpay shares. Chinese Tencent Holdings Ltd, with 5% holding in Afterpay, will get A$1.7 billion.

The Australian share market has closed at a record high, with gains across all sectors, led by a surge in Afterpay shares.

comments powered by HyperComments

Hot Tweets 🔥