Beyond BNPL: Here’s how Afterpay (ASX:APT) is also targeting spendings and savings

Afterpay has launched a banking service and is marketing it to Millennials and Gen Z
The post Beyond BNPL: Here’s how Afterpay (ASX:APT) is also targeting spendings and savings appeared first on The Motley Fool Australia. –

Holders of Afterpay Ltd (ASX: APT) shares most likely know they own a buy now, pay later (BNPL) company. But the ASX tech giant has a bit more on its plate nowadays.

Earlier this week, Afterpay launched its newest offering, veering far closer to the banking sphere than the company has previously ventured.

Using Westpac Banking Corp (ASX: WBC) as a service, Money by Afterpay provides users with a debit card, digital wallet, and the option to open up to 15 savings accounts. It may also start to offer home loans in the future.

At the time of writing, the Afterpay share price is $115.21, 0.9% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.95% right now.

Let’s take a look at Afterpay’s newest offering.

Do owners of Afterpay shares now hold a bank?

According to the company, Money by Afterpay is “built for the Afterpay generation” and is aimed at Gen Z and Millennial customers.

The app offers Instagram-esque ‘stories’ giving users insights into their saving and spending habits.

Money by Afterpay users take advantage of ‘superpowers’ such as the ability to turn some historic transactions valued at more than $200 into a BNPL purchase.

It also offers 0.75% interest per annum on savings accounts if a user has a combined savings balance of $50,000.

The Money by Afterpay app dropped in Australia on Tuesday. It can currently be downloaded from the Apple Inc (NASDAQ: AAPL) app store. An Android version is expected to launch in 2022.

Further, according to reporting by The Australian, Westpac and Afterpay are both considering adding mortgages to Money by Afterpay’s offerings.

Additionally, Afterpay’s suitor, Square Inc (NYSE: SQ), holds a banking licence in the US. Thus, the publication also claims Afterpay’s offerings could move even closer to that of a bank following the proposed takeover.

As The Motley Fool Australia reported earlier this week, Square’s CEO, Jack Dorsey is particularly excited about the companies’ synergies and differences.

Afterpay executive vice president of new platforms Lee Hatton commented on the new offering:

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.

Right now, the Afterpay share price is 3% lower than it was at the start of 2021. However, it has gained 0.6% over the last month.

The post Beyond BNPL: Here’s how Afterpay (ASX:APT) is also targeting spendings and savings appeared first on The Motley Fool Australia.

Should you invest $1,000 in Afterpay right now?

Before you consider Afterpay, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Afterpay wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 tech shares in focus as Nasdaq plunges 1.7%

Why Afterpay, Immutep, Pushpay, and Vulcan shares are falling

Afterpay (ASX:APT) share price lifts despite hospitality push creating concerns

Afterpay (ASX:APT) ‘represents our largest potential’: Jack Dorsey

Why are ASX 200 tech shares having such a lousy day?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!