Money by Afterpay sees the fintech move beyond pay-in-four transactions and towards ‘traditional’ banking, thanks to its partnership with Westpac. Through the Money app, Afterpay users can access savings and spending accounts backed by Westpac, along with a physical debit card linked to the transaction account. Afterpay says the Money app will offer social media-inspired insights based on account balances and Buy Now, Pay Later usage, granting users a view of their financial position. The company bills the Money app as a way for users, particularly Gen Z and millennial Australians, to fully grasp their saving habits while keeping an eye on their Buy Now, Pay Later expenditure.
Beyond linking Buy Now, Pay Later transactions to bespoke Westpac bank accounts, Money will also launch Retro, the ability for app users to retroactively break transactions of up to AUD 200 into four separate repayments. Afterpay bills the feature as a way for users to avoid overdrawn fees when paying down expenses.
However, critics like the Consumer Action Law Centre have likened Retro to other new pay-on-demand services, which wrap the functionality and risks of payday lending into slick and easy-to-use apps.
While the Money app is backed by Westpac infrastructure, Retro will not be subject to the kind of credit restrictions faced by traditional payday lenders. Retro will have no upfront cost for users if repayments are made on time, but Afterpay notes ‘late fees and transaction limits may apply’.
Money will also serve as a customer acquisition tool in underweight demographics turning away from old-school bank products. The bank is already eyeing future opportunities through Money — including the prospect of app-based mortgages. Westpac plans to explore that option in 2022.
Money by Afterpay is now available to iOS users, with an Android version expected to go live in 2022.
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