Shares in the San Francisco-based buy-now, pay-later company fell as much as six per cent earlier Tuesday, before closing nearly three per cent higher. On Monday, the stock rose almost 15 per cent on news that Square was buying Australian BNPL firm Afterpay for US$29 billion. (The Logic)

Talking point: The market seems to still be getting a handle on what, exactly, this deal means for Afterpay competitors like Affirm. One analyst suggested that the Afterpay acquisition could trigger a wave of consolidation in the industry, with BNPL providers rushing to match the scale of Square’s already massive network of merchants. MoffettNathanson analyst Lisa Ellis noted in a report this week that Stripe, American Express and Shopify could pursue companies like Affirm and Klarna; Shopify already owns a large stake in Affirm, worth about US$2 billion as of January. Within Canada, the BNPL sector has been heating up in recent months, with Sweden’s Klarna building its presence to challenge Afterpay and Affirm.