Square and Afterpay

US fintech company Square Inc, founded by Twitter founder Jack Dorsey, has entered into an agreement with Australian online payment merchant Afterpay Limited to swap shares worth $29bn, according to a statement from Square.

The company said the deal is expected to close in the first quarter of calendar year 2022. Under the agreement, Afterpay shareholders will receive 0.375 Square Class A shares in exchange for one Afterpay share.

"Square wants to incorporate Afterpay into its existing units. Apps such as: Seller and Cash, allow even the smallest merchants to offer installment payments at checkout, allow Afterpay users to control their payments in the app and allow Cash customers to find merchants and installment offers right in the app," the statement said.

Square has several projects Seller, Cash App and TIDAL. The first allows you to communicate with customers online and in person, manage their business and provide access to finance. Individuals use the Cash app to transfer, store and invest money. TIDAL is a global music and entertainment platform that aims to empower artists. Dorsey founded Square in 2009, and in 2015 it IPOed and went public. The founder himself owns 10% of Square.

Afterpay Limited gives customers the opportunity to receive and pay for purchases in instalments four times over without interest. As of June 30, 2021, Afterpay serves more than 16 million consumers and nearly 100,000 merchants worldwide, including major retailers.