EconomyTwitter founder Jack Dorsey puts 29 billion dollars (24.4 billion euros) on the table for a takeover in the fintech sector. Payment service provider Square, which is led by Jack Dorsey, will take over the Australian Afterpay for that amount. Afterpay makes it easy for consumers to pay for their online purchases later and is used by many young people as an alternative to a credit card.
–
The acquisition could boost Square’s Cash app. This allows users to transfer money to each other. Cash has 70 million users annually, to which the 16 million customers of Afterpay are added.
–
With the Afterpay app, customers can buy products in web stores and pay for them upon receipt. The app has become popular as consumers increasingly shop online due to the corona pandemic. Especially young people who do not have a credit card use the app. According to Afterpay, customers pay no fee or interest on the loan if they pay on time. Square itself does not yet offer consumer loans.
–
“Square and Afterpay have a common goal,” Dorsey says. “We built our business to make the financial system fairer, more accessible and more inclusive, and Afterpay has built a trusted brand that aligns with those principles.”
–
Bloomberg analysts point out that shareholders could reject the proposed offer. The acquisition would be fully paid for in Square’s shares. The offer is considerably higher than the current market value of Afterpay, but is below the share’s peak earlier this year. In addition, Afterpay is growing faster than Square.
–
Also read:
–
–
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss out on any of the stars.
–
–
