The company has raised an excess of AUD 2 million (USD 1.5 million) in funding to develop and launch a prepaid debit card which will be the first step towards Australia’s first independent and digital mobile bank.
Xinja has opened talks with the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission for receiving a limited banking license.
The company will issue 5000 debit cards to clients (this does not require a banking license) by the end of 2017. The feedback after the trails will be used to develop the full product, which will be released in 2018. Six months after the trail, the company plans to launch deposit accounts, mortgages and credit cards.
Xinja will not charge account fees and will offer a free version of their services. The company’s business model will rely on additional premium features that customers can activate.
The Australia-based startup will combine real-time payments with the option to save money for specific purposes without having to open a separate account.
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