Advanced Search

The story appears on

Page A8

August 3, 2021

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business

Twitter founder buys Aussie fintech firm

Source: AFP | 00:00 UTC+8 August 3, 2021 | Print Edition

TWITTER co-founder Jack Dorsey’s Square unveiled a record US$29 billion deal to snap up Australia’s fast-growing buy-now, pay-later firm Afterpay, in a major bet on the burgeoning sector, sending its share price soaring yesterday.

The Australian fintech was founded six years ago and allows consumers to buy everything from laptops to flights in staggered payments without interest.

“Square and Afterpay have a shared purpose,” Dorsey — who made his billions through Twitter — said announcing the deal on Sunday. “We built our business to make the financial system more fair, accessible and inclusive.”

Afterpay makes money by taking a commission from retailers and charging fees to late-paying customers.

It has 16 million customers in Australia, Britain, Canada and the US.

Consumer advocacy groups have long voiced concern that buy now, pay later services could encourage people — especially the young — to spend beyond their means.

Industry watchdog the Australian Securities and Investments Commission says one in five such customers are missing payments.

The Square-Afterpay deal is expected to close in the first quarter of 2022, and at A$39 billion would be the largest in Australian corporate history. Afterpay shareholders will own 18.5 percent of the new company.

Afterpay co-founders Anthony Eisen and Nick Molnar said the deal was “an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world.”

Business


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend