$ Payment of installment in 29B deal Square to buy firm after pay.
Digital payments company Square Inc. says it has agreed to the acquisition of AfterPay, which gives merchants the option to “buy now, pay later”, valued at about 29 29.29 billion.
Digital payments company Square Inc. says it has agreed to the acquisition of AfterPay, which offers merchants the “buy now, pay later” option, valued at about 29 29.29 billion.
Square said on Sunday that it had agreed to buy all shares of the Australian company, and that the estimated value of the transaction was based on last Friday’s closing price of Square Common Stock.
Square allows retailers to use credit card transactions using devices that are plugged into a tablet or smartphone. The San Francisco-based company said the acquisition is expected to close in early 2022.
The company plans to integrate AfterPay into its services, allowing merchants to offer customers the option to pay for goods without having to rely on a credit card. Later paying customers will be able to manage their installment payments directly in the Square Cash app.
About 70 million people use the Square Cash app. As of June 30, AfterPay was serving more than 16 million customers and nearly 100,000 merchants, including major retailers, the company said.
Installment plans are popular with retailers because they encourage consumers to spend more money. And they enable consumers with insufficient funds or credit to walk out of the store with the item of their choice at the time of purchase. Payment is made in several installments over time, without interest – unless customers are late, in which case additional fees or interest may start.
The companies said in a joint press release announcing the transaction that “later payments are committed to helping people spend responsibly without incurring service fees.”