Square's plan to acquire Afterpay, an Australian "buy-now-pay-later" company, for approximately US$29 billion in stock is both large and symbolic. It is the most vivid signal yet that greater M&A and activity is coming for the consumer lending space, one of the hottest fintech verticals.  

As discussed in our report, published just last week, we see increased M&A and consolidation activity in the remainder of 2021 and 2022. The COVID-19 pandemic has accelerated the demand for digital products and services in profound ways, putting in sharp relief the extent to which many younger consumers are eschewing traditional credit products and providers.  

Fintechs will be both acquirers and targets in the years ahead. Our report highlights the top 10 issues that should be considered before signing up a deal.