Square plans to buy an Australian company Postpay, which offers a “buy now, pay later” service that allows you to pay for purchases in interest-free installments of $ 29 billion in inventory, both companies announced on Sunday. It’s Square’s latest big move, which has also announced Bitcoin business unit and that it acquired a majority stake in the Tidal streaming service This year.
Buy now, pay later services such as those offered by Afterpay, Affirm and Klarna have become widespread throughout the network. And Square may not be the only pay giant to jump into the ring, like Apple is said to be doing a similar service it is internally called “Apple Pay Later”.
According to a press release, Afterpay already serves more than 16 million customers and nearly 100,000 merchants around the world. Square and Afterpay expect the transaction to close in the first quarter of 2022. Once the acquisition is complete, Square will appoint an Afterpay director to join Square’s board.
“Square and Afterpay have a common purpose. We built our business to make the financial system fairer, easier to use and more inclusive, and Afterpay has built a trusted brand that aligns with these principles, ”Square founder and CEO Jack Dorsey said in a statement. “Together, we can better integrate our Cash App and Seller ecosystems to provide more attractive products and services to merchants and consumers, giving power back into their hands.”