San Francisco-based fintech giant Square announced Sunday that its plans to acquire Afterpay, an Australia-based fintech giant known for its “buy now, pay later” software. The $29 billion all-stock deal will help fuel Square’s strategic priorities for its Seller and Cash App features. The company plans to incorporate Afterpay’s technology into its existing Cash App with the hope that it will encourage more small merchants to engage with the platform.
“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,” Jack Dorsey, co-founder and CEO of Square, said in a statement.
Once Cash App is fully updated with Afterpay’s technology, users will have the ability to manage their installment payments directly in the app.
“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,” Dorsey continued.
Afterpay will contribute to Square’s growth by introducing a wide swath of new sellers to its technology. The BNPL platform serves more than 16 million users and nearly 100,000 merchants around the world, according to the company.
“The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world,” Anthony Eisen and Nick Molnar, co-founders and co-CEOs of Afterpay, said in a statement. “It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision.”
Eisen and Molnar will join Square once the deal is finalized to help lead Afterpay’s respective merchant and consumer businesses, according to the company. Square plans to appoint an Afterpay director to its board following the closing of the deal.
