On Monday, the Block (SQ) Stock rose about 11% to close at $122.29 as it has completed the acquisition of the “buy now, pay later” (BNPL) platform Afterpay.
Afterpay partners with merchants to allow shoppers to receive products immediately and pay for them in installments over time. It allows for interest-free payments in four installments.
The Block CEO Jack Dorsey welcomed the Afterpay team to Block and promised to deliver even better products and services for sellers and consumers while supporting its purpose of making the financial system more fair and accessible to everyone.
In America, about 55% of consumers have used a BNPL service, with the majority being young shoppers, and according to Block, there is a growing demand for the service.
As of June 2021, Afterpay served more than 16 million customers and worked with about 400,000 retailers. The service is available in the U.S, Australia, New Zealand, and Canada. It is also available in the U.K., France, Spain, and Italy, under the Clearpay brand. Square has begun rolling out Afterpay’s BNPL functionality to sellers in the U.S. and Australia.