The ex-Chief Operating Officer of GIG Logistics and now CEO of his logistics consulting firm, Ayodele Adenaike, CPSM , C.P.M. , SCMP, will be on Tekedia Live tomorrow to discuss supply chain management and #logistics. He spent 11 years in DHL before he moved to GIG Logistics. Mr Adenaike understands logistics and supply chain management including the elements for the new and modern economy.
Tue, Aug 3 | 7pm-8pm WAT | Logistics & Supply Chain Management, Ayodele Adenaike.
Come and ask questions on your supply chain issues and Mr. Logistics will be around to answer.
Square, the digital-payments company led by Twitter founder Jack Dorsey, has agreed to buy Australian buy-now, pay-later company Afterpay for $29 billion. People, this is what it is: we are now in the new age of Buy Now, Pay Later, reshaping the whole credit economy. In other words, many young people are not interested in the old credit system, and have shown through the evolution of the Buy Now, Pay Later systems that they prefer this evolving model. I expect more exits in this space as Apple Pay joins the fray and most want to get out before the ecosystem is reshaped.
In the age of fintech boom, every payment company appears to have a goal to expand to new markets. For some, it means raising funds in new rounds; while for others, it means acquisition or using a different playbook. From Stripe’s acquisition of Nigerian startup Paystack to Flutterwave, another Nigerian payment firm, attaining unicorn status, the uptick has been remarkable. Now Square, a payments company cofounded by Twitter CEO Jack Dorsey, is joining the race.
Square plans to buy Australian fintech company Afterpay as it looks to expand further into the booming installment loan market.
In some cases, you may not even have to pay interest (the merchant pays the interest for you)!
In Nigeria, expect agile fintechs to begin to redesign their lending products with BNPL since BNPL is more optimized as the interest rate is activated after you have identified and acquired the products, instead of borrowing money and warehousing in a bank account, and yet paying interest when you have not deployed it.
This shift is massive as repayment uses bank account ACH (minimal fees), not credit cards. So, if this BNPL picks up at scale, card companies like Visa and Mastercard could be in the crosshairs of a major shift.
In the age of fintech boom, every payment company appears to have a goal to expand to new markets. For some, it means raising funds in new rounds; while for others, it means acquisition or using a different playbook. FromStripe’s acquisition of Nigerian startup Paystack to Flutterwave, another Nigerian payment firm,attaining unicorn status, the uptick has been remarkable. Now Square, a payments company cofounded by Twitter CEO Jack Dorsey, is joining the race.
Square plans to buy Australian fintech companyAfterpay as it looks to expand further into the booming installment loan market.
The company announced the $29 billion, all-stock deal on Sunday evening. The price tag marks a roughly 30% premium to Afterpay’s last closing price.
“Square and Afterpay have a shared purpose,” said Square’s CEO Dorsey in a statement. “We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles.”
Shares of Afterpay in Australia surged on that news, and closed nearly 19% higher on Monday.
Founded in 2015, Afterpay offers buy-now-pay-later services to millions of its users cut across Australia, US, Canada, UK (where it is called Clearpay) and New Zealand. The company allows customers to access the things they want and need, while still allowing them to maintain financial wellness and control, by splitting payments in four, for both online and in-store purchase.
Square pointed to consumers eschewing traditional credit, especially younger buyers. The San Francisco-based payments company already offers installment loans, which said it has been a “powerful growth tool” for Square’s core seller business. It plans to integrate Afterpay into both its seller and Cash App ecosystems.
Afterpay lets customers pay in four interest-free installments and pay a fee if they miss an automated payment. Its 16 million customers will eventually be able to manage installment payments directly through Cash App. The deal is expected to close in the first quarter of 2022.
Per CNBC, installment loans have been around for decades, and were historically used for big-ticket purchases such as furniture. Online payment players and fintechs have been competing to launch their own version of “pay later” products for online items in the low hundreds of dollars.
Affirm is one of the better-known public companies offering the option to finance items in smaller, monthly payments. PayPal, Klarna, Mastercard and Fiserv, American Express, Citi and J.P. Morgan Chase are all offering similar loan products. Apple is planning to launch installment lending in a partnership with Goldman Sachs, Bloomberg reported last month.
Square also announced its second-quarter results on Sunday, ahead of the previously planned release on Wednesday.
Gross profit increased 91% from a year ago, which marked a record quarterly growth rate for the payments company. Cash App profit was up 94%, while seller jumped 85% from a year ago. Net revenue excluding bitcoin came in at $1.96 billion for the quarter, an 87% rise year over year.
The company’s Venmo competitor, Cash App now has 40 million monthly transacting active customers.
Afterpay derives its revenue from merchants rather than customers. The company believes its pattern of play will encourage a more accessible and sustainable world in which people are rewarded for doing the right thing, thereby powering an economy where everyone wins.
So excited that we have just closed multiple year pre-payments for Business Growth w/ Ndubuisi Ekekwe, a new Tekedia Institute program which is Zoom-only. Business executives, professionals and students are coming on board. We are offering the option to pre-pay for a maximum of 3 years at once which will mean 15 sessions.
We thank Emmanuel S Akintunde for signing up for three years. There is an app called Clubhouse where people just talk and talk; Tekedia Growth is a business translation of that, and our conversation will be more valuable as we will be discussing business growth.
Pick your seat and master the physics of business growth.
Program will run for 8 weeks, every Saturday at 4.30pm – 6.30pm WAT, on Zoom. The sessions will be recorded and archived in the portal for members who may miss them. For each session, the faculty will teach and make a presentation and then discussions will follow. This program will run from Sept 4 to Oct 23, 2021.
Good People, the new program is coming out fine – so far, 127 members have responded in the 24 hours we unveiled. We are expecting to reach 1,000 members as quickly as possible. I also report that some are coming for 3 years. Yes, you can prepare for three years.
Program: Business Growth Playbooks with Ndubuisi Ekekwe
Time: Saturdays, 4.30pm – 6.00pm WAT
Location: Zoom
Start/End dates: Sept 4 – Oct 23, 2021
Faculty: Prof Ndubuisi Ekekwe, Lead Faculty at Tekedia Institute
Business systems and making alpha. I have got the first session ready and the title is “The Physics of Growth”. Yes, we will explain the natural philosophy within business growth in Africa. This is a cambrian moment and the future is exciting.
Join me every Saturday at Business Growth Playbooks w/ Ndubuisi Ekekwe. Register here for N20k or $60.
Updated: So excited that we have just closed multiple year pre-payments for Business Growth w/ Ndubuisi Ekekwe, a new Tekedia Institute program which is Zoom-only. Business executives, professionals and students are coming on board. We are offering the option to pre-pay for a maximum of 3 years at once which will mean 15 sessions.
We thank Emmanuel S Akintunde for signing up for three years. There is an app called Clubhouse where people just talk and talk; Tekedia Growth is a business translation of that, and our conversation will be more valuable as we will be discussing business growth. Pick your seat and master the physics of business growth.
