US-based financial services company Square Inc has entered an agreement to acquire Australian fintech firm Afterpay Limited. Both companies will integrate their businesses under the agreement, which will eventually enable Aussie users on Afterpay to make bitcoin purchases on a “buy now, pay later“ (BNPL) basis.
Square to Integrate Afterpay Services on Cash App
Under the so-called “Scheme Implementation Deed“, Square agreed to acquire all Afterpay’s issued shares (ASX: APT) for an implied value of A$39 billion (US$29 billion), as per the announcement.
Square CEO Jack Dorsey said his company would connect its Cash App and Seller ecosystem with Afterpay to offer more effective services and products for consumers and merchants.
This integration further extends Cash App services to Afterpay users, which means Australian users on the platform will benefit from different financial tools offered by Cash App, including bitcoin purchases, money transfers, cash boosts and others.
The addition of Afterpay to Cash App will strengthen our growing network of consumers around the world while supporting consumers with flexible, responsible payment options. Afterpay will help deepen and reinforce the connections between our Cash App and Seller ecosystems and accelerate our ability to offer a rich suite of commerce capabilities to Cash App customers.
Brian Grassadonia, Cash App lead, Square
If certain closing conditions for the deal are met, the transaction will be finalised in Q1 2022. On completion, the co-founders and co-CEOs of Afterpay will join Square to spearhead the services of the Aussie company under the Cash App and Seller ecosystem. Also, one of the execs at Afterpay is expected to join Square’s board.
Square’s Relationship with Crypto
Led by Jack Dorsey, Square has been an active player in the crypto space. It enables people to buy and sell cryptocurrencies via the Cash App, which recorded about US$3.5 billion bitcoin revenue in Q1 2021. Early in June, Dorsey disclosed on Twitter that Square was seriously considering developing a bitcoin wallet to support the community.
In addition, Square has invested over US$200 million in Bitcoin, rating it as one of the top corporate Bitcoin corporate investors.
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