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Afterpay launches new money app

Buy now, pay later service provider Afterpay Australia has launched a new money and lifestyle app to its 3.6 million users using Westpac’s banking-as-a-service offering.

Following its announcement earlier this year that it would launch into the banking space with a new app, ASX-listed buy now, pay later (BNPL) service provider Afterpay Australia has officially launched Money by Afterpay (Money) for iOS. An Android version is expected in 2022.

The new money management and lifestyle app targets the 3.6 million Afterpay customers – mainly Gen Z and Millennials – and leverages Westpac’s banking-as-a-service (BaaS) solution to provide access to savings accounts.

The savings accounts come with a variable interest rate of 0.75 per cent per annum. Users can open up to 15 different savings accounts with a combined total balance of up to $50,000 and can utilise a “round up” feature to automatically round their purchases to the nearest dollar and deposit it into one savings account.

Customers using the Money app will have a physical debit card, a digital wallet offering and have access to make and receive real-time payments (via the New Payments Platform).


The app also integrates with Afterpay’s PULSE Rewards to incentivise savings and features and Afterpay Retro, which allows customers to retroactively create Afterpay pay in four orders from eligible transactions of up to $200 in total. This is only available to Money app users who maintain a Money by Afterpay Daily Account with at least one eligible transaction, maintain an Afterpay BNPL account in good standing, have not exceeded their Afterpay spend limit (of which $200 can be used for Retro) and have repaid at least 25 per cent of one Afterpay order.

The company said it had utilised feedback from its predominantly female Gen Z and Millennial customers to inform the creation of the Money by Afterpay “experience”. This includes social media-style “Money Stories” that provide daily and weekly insights into their spending habits and savings progress to help inspire savings behaviours. 

Afterpay co-chief executives and co-founders Anthony Eisen and Nick Molnar said: “Bringing Money by Afterpay to life in just 12 short months reflects the incredible passion our team has for our customers – and for the relentless drive to challenge the status quo in order to deliver a better offering. 

“Afterpay has become synonymous with Buy Now Pay Later and now we hope Money by Afterpay becomes the go-to for all things money – earnings, spending, savings and BNPL.” 

Lee Hatton, Afterpay’s executive vice-president, new platforms, added: “With more than 3.6 million Afterpay customers in Australia and more than 1 million of those customers in our sweet spot audience for this offering, we have the ability to introduce Money by Afterpay as the way to look after their money. 

“This introduction is only the beginning as we help our customers build their money confidence through an ongoing roadmap of new features and useful, inspiring content.” 

Westpac CEO, specialist businesses, Jason Yetton, stated that Westpac was “particularly proud to bring this partnership with Afterpay to life”.

“Westpac Banking as a Service will provide Money by Afterpay customers an innovative way to digitally bank underpinned by Westpac’s strengths of safety, security and trust,” Mr Yetton said.

The launch comes as the BNPL provider prepares to be bought by a US-based payments company.

The proposed multibillion-dollar acquisition of the BNPL platform by Lanai (AU) 2 Pty Ltd – a wholly owned indirect subsidiary of Silicon Valley-based digital payments company Square, Inc (Square) – took step closer to completion recently, after Square stockholders approved the acquisition and the Australian Competition and Consumer Commission (ACCC) said it would not take the deal to public review.

The transaction is expected to close “in the first quarter of calendar year 2022”, subject to shareholder, regulatory and court approvals. 

[Related: Afterpay to roll out banking app]

Afterpay launches new money app

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