Twitter CEO and Square co-founder and CEO Jack Dorsey speaks at the 2021 Bitcoin Conference at the Mana Convention Center in Miami, Florida, on June 4, 2021.
Marco Bello | AFP | Getty Images
Jack DorseyThe payment company announced a $29 billion all-stock transaction on Sunday night. This price tag is approximately 30% premium to Afterpay’s final closing price.
“Square and Afterpay have a common goal,” Square CEO Dorsey said in a statement. “We built our business to make the financial system more fair, accessible and inclusive, and Afterpay has built a trustworthy brand that complies with these principles.”
Square pointed out that consumers avoid traditional credit, especially young buyers. The San Francisco-based payments company has already offered installment loans and said it has become a “powerful growth tool” for Square’s core seller business. It plans to integrate Afterpay into its seller and Cash App ecosystem.
Afterpay allows customers to pay in four interest-free installments, and if they miss the automatic payment, they need to pay a fee. Its 16 million customers will eventually be able to manage installment payments directly through the Cash App. The transaction is expected to be completed in the first quarter of 2022.
So-called installment loans have existed for decades and historically have been used to purchase commodities such as furniture.Online payment players and fintech companies have compete Launch their own version of “Pay Later” products for online purchases as low as hundreds of dollars.
confirm It is one of the most famous listed companies and offers the option of financing projects with a smaller monthly payment method. Paypal, Klarna, MasterCard And Featherf, American Express, Citi and JPMorgan Both provide similar loan products. Apple Is planning to cooperate with the following institutions to launch instalment loans Goldman Sachs, Bloomberg reported last month.
Square also announced its second-quarter results on Sunday, after it was scheduled to be released on Wednesday.
Gross profit increased by 91% year-on-year, which marked the payment company’s quarterly growth rate at a record high. Cash App’s profits have increased by 94%, while sellers have increased by 85% from a year ago. Net income excluding Bitcoin for the quarter was $1.96 billion, an increase of 87% year-on-year.
The company’s Venmo competitor Cash App now has 40 million monthly active customers.
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