Afterpay begins trial run of 'Money' application, to launch in October

New banking app geared towards attracting young customers

Australian buy-now-pay-later firm Afterpay Ltd said on Tuesday it will launch a new banking application in October to attract young customers and shore up its core "buy now pay later" user base and transactions.

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The banking application, called "Money", will be tested internally before being launched for the company's 3.5 million active customers in Australia, Afterpay said.

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The application, designed to help manage expenditure and savings, will give its depositors an interest rate of 1% per year, according to the company.

FILE PHOTO: A logo for the company Afterpay is seen in a store window in Sydney, Australia, July 9, 2020. REUTERS/Stephen Coates/File Photo

Westpac Banking Corp, which teamed up with the BNPL firm in October last year, will be the regulated deposit account and card issuer for the users of the banking application.

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Afterpay said it has obtained an Australian Financial Service license from the country's securities regulator, which will allow it to provide customers financial advice, debit cards and deposit products.