After the acquisition of Afterpay, Square Inc. is likely to become a more powerful force in the rapidly growing Buy Now, Pay Later (BNPL) market. Are you interested in Square integration? What can you expect from this huge acquisition in payments?
Square Purchasing Afterpay: What to Expect
Square has decided to acquire BNPL company Afterpay for $29 billion. This is the largest acquisition Square has ever had and is going to create bases for Square to become a major player in the BNPL fintech space.
The deal enables both companies to scale a 2-sided, multichannel payments, commerce, and financial services ecosystem. This will create a brighter future for Square’s integrated POS platform and enable the company to deliver merchant services, thus enabling the company to enlarge its customer base.
Moreover, Afterpay and Square’s Cash App users can do more business within their new ecosystem. This will appeal to more merchants and help the companies raise more revenue.
Square in BNPL
Did you know that 14% of all U.S. consumers relied on a BNPL solution in 2020? By the way, the BNPL market is forecast to grow 10 – 15 times by 2025, as Bank of America reports. Because of the Square/Afterpay deal, there are more discussions over the way traditional banks and card networks should act in the BNPL space.
What about you? Are you keeping your finger on the pulse of the latest developments in payments? Are you using advanced and reliable payment processing services or need help with merchant services such as Square integration? You can find them easily if you work with a reputable payments comparison specialist in the U.S. This is how you can draw a parallel among the available options and be able to make the right choice for your financial needs.
Let’s move on with the Square/Afterpay acquisition. So, Square will integrate Afterpay’s service with its seller ecosystem and payment platform Cash App. The users base accounts for over 70 million U.S. consumers and small businesses. In addition, Afterpay’s users represent over 16 million consumers and the company’s services are used by over 100.000 businesses.
Now, Square gets an opportunity to deliver BNPL services to its millions of merchants. on a side note, the payments processed by these merchants made up $38.8bn during the company’s most recent quarter. And this isn’t the whole story: Afterpay will also add its clients, including Amazon and Target.
Square/After Deal: What This Means in the BNPL Market
Square is buying Afterpay and entering the fast-growing Buy Now, Pay Later market. The deal is worth $29 Billion and is the largest one for Square.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of payment services, including Square integration. He also writes non-fiction, on subjects ranging from personal finance to stocks to crypto pay. He enjoys eating pie with ice cream on his backyard porch, as should all right-thinking people.