Afterpay executive Lee Hatton says giving customers access to cryptocurrencies will be a necessary part of its toolkit, as the fintech starts its campaign to deepen financial ties with younger users by selling them bank accounts.
Ms Hatton also signalled the upcoming $39 billion takeover of Afterpay would likely result in Afterpay users being offered a number of additional services provided by its future owner Square, including share trading and peer-to-peer payments.
Afterpay’s Lee HattonCredit:Louise Kennerley
Afterpay is this week launching its banking app, which piggybacks on Westpac’s licence to sell Afterpay-branded bank accounts aimed at Generation Z female shoppers.
The app, which the company claims will bring a “social-media style” approach, is another sign of the fierce competition for young customers between fintechs and banks, following CBA’s recent landmark move into crypto assets.
Afterpay has previously signalled its interest in using cryptocurrencies to cut merchants’ payment costs, and that it was considering how to include the asset class on its platform.
Asked if offering users access to crypto assets would be necessary to attract the young, Ms Hatton said: “We think it will be, but we also think it should be done in a really measured and clever way, not just in a reactionary way. So for us, we’ve been encouraging from a regulatory perspective, to make sure that there’s some good guard rails around it.”
Ms Hatton, the company’s executive vice president for new platforms, did not say when Afterpay would offer crypto services. Its rival Zip Co is planning to offer crypto trading within the next year.
The app, named Money by Afterpay, will include budgeting tools, a “round-up” feature to encourage saving, and content on how other users manage their money.
Afterpay makes revenue by providing short-term instalment loans known as “buy now, pay later (BNPL)” products, but the banking app is a sign of the company seeking out new sources of income.
Crypto critical to Afterpay’s post-merger road map
Source: Philippines Alive
