Business & Investment

Square buys Australian afterpay on $ 29 billion transaction

Sydney — Square Inc. has agreed to trade all shares worth approximately $ 29 billion to acquire Afterpay Ltd. of Australia. This is an installment company that positions the service as a cheaper and more responsible alternative to credit cards.

square
SQ,
-3.14%

He said he plans to integrate afterpay
APT,
-5.28%

Pay later services at checkout to sellers and cash app business units that allow more retailers to offer so-called “buy now”.

Before: Buy Now and Pay Later: Afterpay, Klarna, Affirm, and Rivals Want to Dominate the United States

Afterpay technology allows users to receive goods immediately and pay for them in four interest-free installments. The customer pays only if he misses the automatic payment. This is a breach of locking your account until your balance is repaid. Afterpay states that this limits non-performing loans. This is especially true in a recession where employment stability is unstable and households are growing.

Most of the afterpay revenue comes from retailers, who pay a fixed percentage of the value of each order from a customer plus a fixed fee. The company is expanding nationwide through transactions with retailers such as Anthropologie and Free People.

“Square and Afterpay have a common purpose,” said Jack Dorsey, Square’s CEO. “We built our business to make our financial system fairer, more accessible and more comprehensive. Afterpay has built a credible brand that follows these principles.”

An enhanced version of this report is posted on WSJ.com.

Also popular on WSJ.com:

Behind the rise of solar power in the United States is a mountain of coal in China.

If a landlord earns $ 75,000 a year, he could be taxed by a millionaire.

Square buys Australian afterpay on $ 29 billion transaction

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-757B-652D95F5081F%7D&siteid=rss&rss=1 Square buys Australian afterpay on $ 29 billion transaction

Back to top button