Dorsey, who co-founded Twitter, pointed to Afterpay’s network effect.
He told investors on the call that Square is “seeing strong demand for buy now, pay later from merchants and consumers and rapid adoption amongst both, especially younger consumers.”
Square CEO Jack Dorsey says acquiring Afterpay will drive more e-commerce activity across both services by more tightly connecting retailers with young shoppers, as he kicked off a pitch to encourage the US fintech’s shareholders to support the blockbuster $39 billion deal.
Mr Dorsey said Afterpay had a first-mover advantage in the crowded buy now, pay later sector and he had been drawn to co-founders Anthony Eisen and Nick Molnar’s ambition and “authentic” management style. Their leadership would help Square expand internationally and attract larger merchants, he added.
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Pinwheel, cofounded by Kurtis Lin, is provides payroll API connectivity to make payroll functions more seamless for things like direct deposit switching, income and employment data verification, and payroll linked lending.
Investors following Square (NYSE:SQ) because of its acquisition of Tidal and aggressive investments in Bitcoin are missing the company s most enticing advantage. Square has the opportunity to rapidly become a one-stop-shop for financial services in a huge, underserved market by utilizing customer data in a way big banks can t.
Credit cards are just the beginning of the financial services Square s Cash App could offer. Image source: Square.
Big payoffs in 2020 and beyond
The Cash App is the heart of Square s disruptive impact on the banking industry. As of the company s last shareholder letter, Cash App s revenue and gross profits grew 400% and 162% year over year, respectively, with its monthly active user base up 50% to 36 million monthly active users. Cash App represents the largest, fastest-growing piece of Square s business, providing 63% of its $9.5 billion in total net revenue in 2020. In comparison, Square s Seller ecosystem revenue grew only 2%.