{"id":313973,"date":"2021-08-02T15:07:18","date_gmt":"2021-08-02T12:07:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/square-shares-tumble-after-it-announced-29b-afterpay-deal\/"},"modified":"2021-08-02T15:07:18","modified_gmt":"2021-08-02T12:07:18","slug":"square-shares-tumble-after-it-announced-29b-afterpay-deal","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/square-shares-tumble-after-it-announced-29b-afterpay-deal\/","title":{"rendered":"#Square shares tumble after it announced $29B Afterpay deal"},"content":{"rendered":"

“#Square shares tumble after it announced $29B Afterpay deal<\/strong>”<\/p>\n

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Shares of financial services company Square tumbled almost 5 percent in premarket trading Monday after it announced a $29 billion deal to acquire \u201cbuy now, pay later\u201d firm Afterpay. <\/p>\n

Square, which is helmed by Twitter<\/a> boss Jack Dorsey, announced the all-stock deal on Sunday evening. <\/p>\n

Shares of Melbourne-based Afterpay, which are listed on the Australian Securities Exchange in Sydney, soared almost 20 percent on the news<\/a>. <\/p>\n

\u201cSquare and Afterpay have a shared purpose,\u201d Square\u2019s CEO Dorsey said in a statement. \u201cWe built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles.\u201d<\/p>\n

It\u2019s Square\u2019s biggest deal ever, and the company said it will help position the firm to capture more young users, who have shown a preference for the so-called \u201cbuy now, pay later\u201d trend over traditional lines of credit. <\/p>\n

Afterpay lets customers purchase a product immediately and pay the price off in four, interest-free installments. <\/p>\n

\"Square's
Square\u2019s market value dropped nearly 5 percent after the Afterpay acquisition announcement.<\/figcaption>
Google Finance<\/span><\/figcaption><\/figure>\n

Customers are only charged a fee if they miss an automated payment, which would also result in the locking of their account, which Afterpay says keeps users\u2019 debt in check. <\/p>\n

Afterpay, which boasts more than 16 million customers, has yet to turn a profit as it prioritizes aggressive growth. <\/p>\n

Installment loans like those offered by Afterpay have been used for years to purchase big-ticket items, but online payment startups have begun offering the service for smaller items such as app<\/a>arel, video game<\/a>s and other types of online orders. <\/p>\n

Klarna, another \u201cbuy now, pay later\u201d app, skyrocketed earlier this year to an eye-popping $45.6 billion valuation, becoming Europe\u2019s hottest startup. <\/p>\n

Shares of another financial firm offering the deferred payments option Affirm surged more than 8 percent on the news of the Afterpay acquisition, which may suggest that investors view the sector as ripe for more deals to come. <\/p>\n

And financial heavyweights like PayPal, Mastercard, American Express, JP Morgan and others either already offer \u201cbuy now, pay later\u201d options or are reportedly eying an entry into the space.<\/p>\n

Square is best known for its prolific white card reader that plugs into phones and tablets that many small business use to readily process payments. Square said Sunday it plans to integrate Afterpay and add it as an option wither the smaller merchants that use its technology<\/a>.<\/p>\n

Square also said it will integrate its popular digital payment service Cash App, which lets people store and transfer money like Venmo, with Afterpay, enabling people to make payments on their loans through the app. <\/p>\n

\"Square
Square and Twitter CEO, Jack Dorsey said that \u201cSquare and Afterpay have a shared purpose.\u201d <\/figcaption>
MARCO BELLO\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n

Square added that \u201cAfterpay consumers will receive the benefits of Cash App\u2019s financial tools, including money transfer, stock and Bitcoin purchases, Cash Boost, and more.\u201d<\/p>\n

Executives from Square and Afterpay are expected to discuss the deal more on a conference call Monday morning.<\/p>\n

The deal is expected to close in the first quarter of 2022.<\/p>\n

Square also reported second-quarter earnings on Sunday, ahead of schedule. The company missed expectations for revenue, but posted surprisingly strong net income.<\/p>\n<\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Square shares tumble after it announced $29B Afterpay deal” Shares of financial services company Square tumbled almost 5 percent in premarket trading Monday after it announced a $29 billion deal to acquire \u201cbuy now, pay later\u201d firm Afterpay. Square, which is helmed by Twitter boss Jack Dorsey, announced the all-stock deal on Sunday evening. Shares…<\/p>\n","protected":false},"author":1,"featured_media":313974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/08\/square-98.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[74927,113324,70610,73808],"class_list":["post-313973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-square","tag-8-2-21","tag-finance","tag-loans"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/313973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=313973"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/313973\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/313974"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=313973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=313973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=313973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}