Payment services In the financial technology industry a big acquisition: the payment service company Square will buy pay later service Afterpay

The size of the share-based acquisition is $ 29 billion.

American payment services company Square has agreed to buy Australian Afterpay in the same industry, the company says in a statement.

The deal is worth $ 29 billion (€ 24 billion) and Square plans to pay for its shares to shareholders of Afterpay, which is listed on the Australian Stock Exchange.

Afterpay is known for its global pay later service. It offers consumers the opportunity to buy a product and pay for it later in four installments without interest. The loss-making Afterpay derives its income from the stores that have introduced the service.

Afterpay has more than 16 million customers and nearly 100,000 stores as customers. The purpose of Square is to integrate the Afterpay service into its own.

According to Square, it is interested in buying Afterpay because especially younger consumers ’interest in traditional credit card debt has declined during the coronavirus pandemic.

Square expects to complete the deal in the first quarter of next year.

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