Birds of a feather flock together. Even before announcing their wedding project, Square and Afterpay shared a common point, a stratospheric enhancement. The comparable Bloomberg sample of listed companies in the payments industry – one of Wall Street’s biggest darlings – are already paying themselves on average over 29 times the estimated profits of 0586.
For the two fiancés cooing while waiting of the verdict of the regulators, the love rating happily reached 128 times and 300 times for this financial year which should be the first profitable year for the Australian fintech of split payments.
The subsequent festival of stock market increases (+ 7.9% for Square, + 19% for Afterpay and + 8.3% for Affirm, the American competitor of the “buy now pay later”) therefore recalls that American investors are calling for large-scale operations.
Congested vein It is a question of drawing out of the identified growth potentials as quickly as possible, before they are exhausted. The BNPL vein is very crowded, and it might not be that easy to bring their two ecosystems of business and consumers together. But becoming a “super app” by adding up the forces could be worth the candle.
This significant redemption by its amount (19 billion dollars) and also by its geographical ambition also avoids too much upsetting financial orthodoxy, since it is not accompanied by any outlay of cash. Much more modest (128 millions), the takeover of the musical platform Tidal of rapper Jay-Z had on the contrary been sanctioned at the beginning of year.