What happened Shares of Square (NYSE: SQ) jumped 10% on Monday, after the fintech giant struck a deal to acquire Australian installment payments leader Afterpay (OTC: AFTP.F). So what Afterpay is a leading provider of "buy now, pay later" services used by over 16 million consumers and nearly 100,000 merchants worldwide. The deal values Afterpay at about $29 billion, a roughly 30% premium to its closing price on Friday. Square and Afterpay want to join forces. Image source: Getty Images. The transaction is expected to close in the first quarter of 2022, pending regulatory and shareholder approval. "Square and Afterpay have a shared purpose," Square CEO Jack Dorsey said in a press release. "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." Now what Square says Afterpay could help to tie its seller and Cash App businesses closer together. Square wants to roll out Afterpay's installment services to even its smallest merchant customers, while also giving Afterpay's consumers the option to make payments directly in Cash App. Installment payments have proved popular during the pandemic, particularly among younger shoppers. Merchants, in turn, see offering these payment options as a way to boost sales. Square's seller and Cash App platforms are already thriving. The company released its second-quarter results alongside its acquisition announcement. Gross profit in Square's seller and Cash App segments surged 85% and 94%, respectively, to $585 million and $546 million. That helped Square's net income improve to $204 million, compared to a loss of $11 million in the year-ago quarter. 10 stocks we like better than SquareWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Square wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Square and AFTERPAY T FPO. The Motley Fool has a disclosure policy.Source