certify
Home arrow Article arrow Article Detail

Jack Dorsey’s Square Inc to acquire Afterpay for $29 billion

Profile Image

Joyashree Dey Follow

INDIA

Aug, 03 2021

Aug, 03 2021

likes | comments 0

Article Image

Source -AfterPay Press Kit

As ‘buy now, pay later’ (BNPL) trend takes wing, the payment firm of Jack Dorsey, Square Inc announced on 1st August that they will purchase Australian fintech company Afterpay Limited for $29 billion, expanding further into the flourishing instalment loan market.

After announcing the all-stock deal, the shares of BNPL pioneer Afterpay’s heaved and closed nearly 19% higher on the very next day. The companies said in a joint account that the all-stock deal would value the shares at a cost of $92.65.

Square Inc. CEO Jack Dorsey said in a statement, “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.” The takeover highlights the popularity of a business model that has overturned consumer credit by charging traders a fee to offer small point of sale loans which their shoppers pay back in instalments without interest, avoiding credit checks.

The San Francisco based company points out to consumers avoiding traditional credits, especially young buyers, for installment loans. Though the company already offers installment loans which is a ‘powerful growth tool’ for its core seller business.

In case of Afterpay,it  allows its customers to pay in four interest free instalments and pay a fee if they slip a manual payment. For this buy out 16 million customers will be able to manage installment payments directly from their phones. However, the deal is estimated to close within the first few months of 2022.

Instalment loans have been used over the decades by Payment players and fintech firms like PayPal and Mastercard have been hastening to unveiling their own version of ‘buy now, pay later’ products in the minimum hundreds of dollars. At the same time Apple is also preparing to launch their installment lending in an alliance with Goldman Sachs.


likes | comments 0

Profile Image

Joyashree Dey

CBW - External Analyst

INDIA

Comments
We Are WBS Singapore Award Winners - Top Artificial Intelligence ICO For 2022!
banner
Article
Pentagon Assessing Crypto's Threat to National Security

In light of the rise of digital assets, the US military's innovation office is launching a comprehensive assessment of cryptocurrencies that will examine how the exposure of digital...;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.