Australian BNPL platform Afterpay has announced it will close down its Money app, which will lead to its subsequent exit from its two year partnership with Westpac.
Afterpay intends to close down the Money app and its debit cards this October after it was launched in partnership with the banking service provider. The Australian fintech firm was the first company to join Westpac’s BaaS (Banking as a Service) platform in October 2020.
The wheels of the Money app’s closure were in motion following Afterpay’s $29bn purchase from tech giant Block last January. Afterpay confirmed this sentiment as the group stated its “focus is shifting in a new direction”.
“Our decision to move in this new direction is due to our exciting next chapter with Block, particularly as we think about Cash App opportunities here in Australia,” explained Lee Hatton, Head of Money by Afterpay.
Afterpay confirmed that it will stop taking new customers and has informed current customers to move money out of their accounts until the 10 October closing date.
Users of the Money app will have a daily AUD $10,000 limit on how much they can move out of their account but can be increased upon request.
Formerly titled Square before its rebrand to Block in December 2021, the Jack Dorsey co-founded company provides mobile payment solutions in two specialised areas; sellers and cash for merchant customers.
Along with its acquisition of Afterpay, Block has made major purchases of tech companies such as Weebly and Stitch Labs to diversify its offerings.
Commenting on the initial acquisition of the Australian BNPL, Dorsey said: “Square (now Block) and Afterpay have a shared purpose. We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles.”
“Together, we can better connect our Cash App and Seller ecosystems to deliver even more compelling products and services for merchants and consumers, putting the power back in their hands.”