Square has agreed to acquire Afterpay for US$29 billion. The acquisition is expected to be completed by the first quarter of 2022.
According to Jack Dorsey, Co-Founder and CEO of Square, both companies have a shared purpose of making the financial system more fair, accessible, and inclusive.
“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,” he said.
Australia buy now pay later (BNPL) platform Afterpay will accelerate Square’s strategic priorities for its Seller and Cash App ecosystems. Square plans to integrate Afterpay into its existing Seller and Cash App business units, enable merchants of all sizes to offer BNPL at checkout, giving Afterpay consumers the ability to manage their installment payments directly in Cash App, and Cash App customers the ability to discover merchants and BNPL offers directly within the app.
Afterpay serves more than 16 million consumers and nearly 100,000 merchants globally, including major retailers across key verticals such as fashion, homewares, beauty, and sporting goods. It assists merchants in growing their businesses by helping to drive repeat purchases, increase average transaction sizes, and provide their buyers with the ability to pay over time.
“By combining with Square, we will further accelerate our growth in the US and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers,” said Anthony Eisen and Nick Molnar, Afterpay Co-Founders and Co-CEOs, who will join Square upon completion of the transaction and help lead Afterpay’s respective merchant and consumer businesses, as part of Square’s Seller and Cash App ecosystems.