The move follows Afterpay’s USD 29 billion buyout by Jack Dorsey’s Block earlier this year, which involved integrating Afterpay’s products with its new owner’s ecosystem. As such, the Australian company has decided to close the personal finance app that it was running with Westpac.
The collaboration between the two entities ended less than two years after it began, and according to reuters.com, it leaves Westpac struggling to connect with younger clients who gravitate towards smartphone-friendly, less regulated financial products.
Officials from Afterpay revealed that the company would stop signing on new users for the Money by Afterpay app immediately and would close the service permanently on 10 October 2022.
According to a report from factmr.com, the main goal of personal finance apps is to aid in tracking spending behaviour and provide personalised advice that can help individuals manage their upcoming financial needs.
Furthermore, by helping users manage their income, bills, investments, and spending, personal finance apps can help with financial discipline and diligence. According to the same source, mobile and internet users are on the rise globally, a trend that allows personal finance apps to gain more and more traction.
In this context, while Afterpay is closing down one personal finance app, the move makes space for Jack Dorsey’s Block to reach a wider audience with its Cash App financial platform, which allows people to send money to each other in Australia.
In July 2022, Westpac has taken steps towards becoming a digital-first bank by introducing a digital mortgage where customers can gain unconditional approval in as little as ten minutes. The bank also introduced new features in the Westpac app and outlined a digital strategy for branches to help customers bank anywhere, anytime.
In the same month, the Westpac banking group expanded its credit card insurance for overseas travellers to cover epidemics and pandemics such as COVID-19. This new banking policy allows eligible Westpac credit card customers to benefit from additional coverage for epidemics and pandemics at no additional cost if they are diagnosed with COVID-19. The insurance comprises overseas emergency medical assistance and medical evacuation.
In August 2022, Afterpay released a series of limited-edition non-fungible tokens (NFTs) for New York Fashion Week, which was inspired by the Spring/Summer ’23 collections of designers such as AnOnlyChild, Jonathan Simkhai, The Blonds, and Joseph Altuzarra. The NFTs cost USD 100 each and are accompanied by physical goods such as a special edition leather tote, invites to after parties, and original runway sketches.
In May 2022, Afterpay partnered with fintech platform Adyen to process payments across key markets including Australia, New Zealand, Canada, Europe, the US, and the UK to support the company’s global growth and momentum.
Adyen and Afterpay began their local payment method partnership in 2018, and several of Adyen’s merchants offer Afterpay’s instalment payments. These include MandM Direct, Revolution Beauty, and Superdry.
For more information about Afterpay, please check out the company profile in The Paypers Company Database.
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