Jack Dorsey’s cryptocurrency-friendly digital payments firm Square is expanding competition with global payment giants like PayPal by acquiring a major Australian lending company. Jack Dorsey-owned Square announced Sunday that the firm has entered into a scheme implementation deed to acquire all of the issued shares in fintech company Afterpay in a $29 billion deal. The transaction is based on the closing price of the Square common share and is expected to be paid in all stock in the first quarter of 2022.
Square continues to expand globally.
The recent acquisition allows Square to accelerate its strategic plans for payment ecosystems further. The company is looking to integrate Afterpay into its Seller and Cash App business units to enable a “buy now, pay later” (BNPL) service. According to the announcement, the integration between these two firms will enable small businesses to offer BNPL at checkout, allowing Afterpay consumers to manage their installment payments directly in Cash App and discover BNPL offers directly within the app.
Square releases its quarterly financial reports for shareholders.
The digital payment firm released its quarterly financial reports for shareholders on August 1st, reporting $4.68 Billion in total revenue in the second quarter of 2021. Square’s revenue grew 143% year-on-year (YoY). The firm mentioned it had seen a “significant growth in Bitcoin revenue,” estimated to be worth$2.72 Billion, seeing a 3X growth YoY. However, the gross profit from Bitcoin was only 2% of the total revenue at $55 million. In its Q2 shareholder’s letter, Square mentioned that the total Bitcoin revenue and gross profit declined in the second quarter compared to the first because of the price correction.