• Westpac has signed a new deal to offer its banking accounts to Afterpay customers, directly via the buy now, pay later platform.
• Users will have access to savings and transactions accounts to offer “cashflow management in a simple way”, Afterpay CEO Anthony Eisen said.
• Westpac also owns a stake in Afterpay rival, Zip.
• Visit Business Insider Australia’s homepage for more stories.

Customers of the buy now, pay later company will be able to use Westpac banking services under a new partnership.

Afterpay’s 3.3 million customers will be able to use savings and transactions provided by Australia’s second-largest retail bank in a deal announced on Tuesday.

“We believe Australians deserve greater support and insight to help manage their money,” Afterpay CEO Anthony Eisen said.

“Together with the power of our retail platform, the latest banking technology from 10x, and the support of Westpac, we will begin by offering cashflow management in a simple way.”

Afterpay said users will be able to use it for “paying bills, withdrawing cash and budgeting”, with more tools to come. On the back of the news, the company’s stock price soared past $100 a share for the first time.

While Afterpay has long been criticised for enabling its user base, predominately young women, to overspend on clothing and other purchases, it has made a deliberate effort to reposition itself as a budgeting tool.

“New money management tools and products… meet the needs of our customers, helping them to make better-informed financial decisions and further differentiating traditional credit products,” Lee Hatton, Afterpay vice president of new platforms, said.

For Westpac, it is the bank’s second major foray into the BNPL sector. It has a long-standing stake in Afterpay rival Zip.

“Fintech innovation is changing banking in important ways and our new digital banking platform is part of our long-term strategy to support this trend and better respond to changing customer needs,” Westpac CEO Peter King said.

“The platform allows us to combine our banking experience with the innovation of our partners to support new customer experiences.”

The move from Afterpay marks a concerted effort towards increasing its legitimacy. Having recently shaken off a 16-month AUSTRAC investigation, it last week partnered with Fashion Week as it tries to throw off long-standing associations with fast-fashion.

“For Afterpay, this is clearly just the beginning as we explore this opportunity globally,” Eisen said.

Having bounced from $7 per share to over $100 in the space of a few months, fending off further regulation all the while, many wonder where it is going to end.

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