Jack Dorsey's cryptocurrency-friendly digital payments firm Square is expanding competition with global payments giants similar PayPal by acquiring a major Australian lending company.

Square announced Sunday that the firm has entered into a scheme implementation deed to learn all of the issued shares in fintech visitor Afterpay in a $29-billion deal. The transaction is based on the closing price of the Square common share and is expected to be paid in all stock in the first quarter of 2022.

The acquisition enables Square to further advance its strategic plans for payment ecosystems as the company is looking to integrate Afterpay into its Seller and Cash App business organization units to enable a "buy now, pay later" (BNPL) service.

Also referred to every bit installment loans, BNPL transactions allow customers to pay a nib in small portions throughout a fixed period of time and are actively pioneered past global financial firms such every bit PayPal, Mastercard, Klarna, Citi and others.

Co-ordinate to the proclamation, the integration will enable small businesses to offer BNPL at checkout, allowing Afterpay consumers to manage their installment payments directly in Cash App and to find that BNPL offers directly within the app. The integration marks a new milestone for Square in meeting the growing consumer need for shifting away from traditional credit.

Square co-founder and CEO Dorsey said that the acquisition volition help the companies to deliver on their shared mission to make the financial organization more attainable, off-white and inclusive. "Together, we can improve connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the ability back in their hands," he noted.

Related: DeFi on Bitcoin: Jack Dorsey says Foursquare's new partitioning volition make it happen

Every bit role of the transaction, Afterpay's co-founders and senior executives will bring together Foursquare and assistance lead Afterpay's related merchant and consumer businesses within Square's Seller and Cash App ecosystems. Foursquare has also agreed to establish a secondary list on the Australian Securities Exchange (ASX) to permit Afterpay shareholders to trade Square shares via CHESS depositary interests on the ASX.

The news comes amid Square announcing notable second-quarter earnings, reporting 200% growth in Bitcoin (BTC) acquirement. Square's Bitcoin services generated $55 million in gross turn a profit, increasing 223% year-on-yr, while Cash App generated a gross turn a profit of $546 1000000, surging 94%.