August 6, 2021
Square’s latest acquisition might help them find in-roads into new markets, but it doesn’t change the nature of the biggest challenges facing their business.
While the acquisition of Afterpay will see investors net a timely payout, the reality is that Jack Dorsey’s fintech side hustle needs Australia’s biggest buy now, pay later (BNPL) brand more than it needs him.
Square’s roots sit in the small businesses and physical stores,
John Lobb reminded nestegg.
A portfolio manager for Insync Funds Management, Mr. Lobb said that
the company’s acquisition of BNPL titan Afterpay promises to help them expand into two key new verticals: online sales and consumer-facing financial services.
Both appear to be critical to the company’s future, with Square confirming plans to formally integrate Afterpay into both its Seller and Cash App business units months before the acquisition is finalised.