Square has announced plans to acquire Australian installment payment firm Afterpay to advance its shared mission of economic empowerment.
August 2, 2021, | AtoZ Markets – The digital-payments platform Square, co-founded and led by Twitter CEO Jack Dorsey, is buying the Australian payment service provider Afterpay for $29 billion. Both companies announced this.
The acquisition should therefore be carried out in shares and completed by the first quarter of the coming year.
Square wants to integrate the Afterpay service into its own ecosystem, with the main focus being on the option of paying for products later without additional costs. The merger, according to the plan, is to further accelerate Afterpay’s growth.
Square and Afterpay share a goal
Dorsey founded Square while on hiatus from Twitter and now runs both companies. Square is a financial service provider and, among other things, is active in the area of mobile payment. The company develops products for companies and end users.
Afterpay, on the other hand, offers consumers the opportunity to buy products and pay later for a certain period at no extra cost. In total, the company has over 16 million customers and the service is used by almost 100,000 stores around the world. In Europe, the offer is available in the UK, France, Italy, and Spain.
“Square and Afterpay share a goal”, Dorsey now justifies the planned acquisition. Both wanted to make the financial system fairer, more accessible, and more inclusive. Together, they could make even more appealing products in the future, so that sellers and customers could regain power.
The stock markets are probably not that easy to convince, for Square there are initially signs of a clear minus after the announcement. The company had only acquired the Tidal music service a few months ago.
Square earned $55 million in profits from BTC sales in Q2 2021
According to Square’s report, the second quarter of this year was less successful than the first quarter. In the first three months of 2021, the company sold BTC in the amount of $3.51 billion, and the net profit was $75 million. However, the growth compared to the second quarter of last year was 200%.
Representatives of Square associate the fall in profits with “sufficient stability of the price of Bitcoin, which affected the trading volumes.”
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