Square Inc. said an agreement had been reached with Afterpay Limited to buy the company now and later pay for it in an all-stock deal valued at $ 29 billion.
Square said in a statement today that the acquisition “is designed to enable companies to better offer compelling financial products and services that expand access to more consumers and generate additional revenue for merchants of all sizes.”
Jack Dorsey, Square co-founder and CEO said in a statement that the two companies share a common goal: “We built our business to make the financial system fairer, more accessible and inclusive, and Afterpay has built a trusted brand that is built around that these principles. ”
“ Together we can better connect our cash app and seller ecosystems to deliver even more compelling products and services to merchants and consumers and put power back in their hands, “noted Dorsey.
Square said the deal is expected to accelerate the company’s” strategic priorities for its seller and cash app ecosystems. “
Square plans to integrate Afterpay into its existing Seller and Cash App businesses, enable even the smallest merchants to offer BNPL at the checkout, give Afterpay customers the ability to manage their installment payments directly in the Cash App, and Cash App – Enabling customers to discover dealers and BNPL offers right in the app.
Alyssa Henry, Square Sales Director, said the “buy now, pay later” model was “a strong growth tool for Sellers worldwide. We’re excited to not just add this product to our seller ecosystem, but to do so with a trusted and innovative team. “
Brian Grassadonia, Head of Square’s Cash App Business, said the addition Afterpay’s Cash app “will strengthen our growing consumer networks around the world and support consumers with flexible, responsible payment options. Afterpay will help deepen and strengthen the connections between our cash app and seller ecosystems and accelerate our ability to offer cash app customers a comprehensive suite of commerce features. ”
Afterpay serves worldwide more than 16 million consumers and nearly 100,000 retailers, including major fashion, housewares, beauty and sporting goods retailers. “Afterpay enables consumers to access the things they want and need while maintaining financial health and control,” Square said in a statement. “Afterpay also helps merchants grow their business by helping to drive repeat purchases, increasing the average transaction size, and enabling their buyers to pay over time.”
Anthony Eisen and Nick Molnar , Co-Founders and Co-CEOs of Afterpay, said that by joining forces with Square, “we will further accelerate our growth in the US and worldwide, provide access to a new category of personal merchants, and a broader platform of new and valuable skills and services for our dealers and consumers. ”
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