Square has acquired Afterpay in a deal valued at A$39 billion to enable the companies to better deliver compelling financial products and services to consumers and drive incremental revenue for merchants.

Square plans to integrate Afterpay into its existing Seller and Cash app business units to allow any merchant to offer buy now pay letter (BNPL) at checkout. This will give Afterpay customers the ability to manage instalment payments directly in the Cash app and allow Cash app customers to discover merchants and BNPL offers directly within the app.

Afterpay will benefit from Square’s customer base of more than 70 million annual transacting active Cash app customers and millions of sellers. Afterpay consumers will receive the benefits of Cash app’s financial tools including money transfer, stock and Bitcoin purchases, Cash Boost and more.

Square co-founder and CEO, Jack Dorsey said Square and Afterpay have a shared purpose – to make the financial system more fair, accessible, and inclusive.

“Afterpay has built a trusted brand aligned with those principles. Together, we can better connect our Cash app and Seller ecosystems to deliver even more compelling products and services for merchants and consumers putting the power back in their hands,” he said.

Square Seller business lead, Alyssa Henry said BNPL has been a powerful growth tool for sellers globally. “We are thrilled to not only add this product to our seller ecosystem but to do it with a trusted and innovative team.”

Square Cash app business lead, Brian Grassadonia added, “The addition of Afterpay to Cash app will strengthen our growing network of consumers while supporting them with flexible, responsible payment options.”

According to Afterpay co-founders and co-CEOs, Anthony Eisen and Nick Molnar, combining with Square, allows the company to further accelerate growth in the US and globally, offer access to a new category of in-person merchants and provide a broader platform of capabilities and services.

“We are fully aligned with Square’s purpose and together, we hope to continue redefining financial wellness and responsible spending to our customers,” Eisen and Molnar said.

“The transaction marks an important recognition of the Australian technology sector as homegrown innovation continues to be shared more broadly throughout the world. It also provides our shareholders with the opportunity to be a part of future growth of an innovative company aligned with our vision.”

Fast CEO, Domm Holland congratulated the Afterpay team on the acquisition from Square. “What an Aussie success story. Proud to have Nick (Afterpay founder and CEO) as an early investor in Fast too. I couldn’t find a better operator and company to aspire to emulate,” he said in a Twitter post.

The transaction is expected to be finalised in Q1 2022 subject to certain closing conditions. Afterpay co-founders and co-CEOs will join Square upon completion of the transaction and one Afterpay director will be appointed to the Square board.