Twitter’s payment platform Square Inc. is on the verge of acquiring Australian buy now, pay later firm Afterpay. According to reports, the deal is reportedly worth $29 billion, as Square plans to enter the latest payment system. The new hot payment method is undermining the traditional merchant card-based payment system.

Integrating the Cash App Units

Square says after the acquisition, it will be integrating Afterpay into its existing cash app business units. This will provide the smallest of merchants the opportunity to offer BNPL at checkout, allowing Afterpay users the ability to easily manage their instalment payments in the app.

Also, the integration will enable Cash App customers to easily find BNPL offers and merchants within the app.

Head of Square’s Cash App business, Brian Grassadoni, commented on the development. He stated that the new platform will help to reinforce and deepen the connections between Seller ecosystems and the company’s Cash App. “The addition of Afterpay to Cash App will strengthen our growing networks of consumers around the world,” Brian added.

It will also increase the company’s ability to provide a rich suite of commerce products to Cash App users, he reiterated.

Presently, Afterpay serves over 16 million customers and about 100,000 merchants all over the world.

Both Square and Afterpay to gain from the deal

In April, the platform deliberated about going public and listing in the US after recording impressive growths in North American markets.

Its third-quarter results showed that its North American sales tripped. The performance was far better than its Australian sales. With the improved sales, it was able to double its total transaction value to $5.2 billion when compared to the previous year’s record.

Also, Afterpay will have a lot to gain from the integration, as it will tap from Square’s large customer base. Presently, Square has millions of sellers and over 70 million Cash App customers.