Afterpay Acquired by Square for a whopping $29 billion
It seems that “buy now and pay later” services are now a thing because Twitter’s Square has just acquired AfterPay which is a buy now pay later service for a whopping $29 billion. Afterpay is an Australian BNPL Company and has been acquired by Square, this was announced on Sunday.
It turns out that buy now and pays later service has been booming since the done of the coronavirus pandemic and square once in on a huge piece of the cake. Hence they have gone all out and acquired the popular buy now pay later service. The way Afterpay work is very easy, when you purchase an item using the Afterpay service you pay one quarter during purchase. After that, you will then keep paying another one quarter every two weeks until the payment is complete.
The service does not impose any interest in the installment payment because they make their money from other means. They make their money from sellers that pay to use their service to make their product available to consumers. However, if you miss a payment there will be a late fee imposed on you for doing so.
Square has gained a tactical business opportunity by buying Afterpay, This is because Afterpay is an Australian-based company. Hence its acquisition will give Square a greater Australian exposure and presence.