The new bank-as-a-service platform uses cloud-native technology from 10x Future Technologies and give Westpac the freedom to offer other companies the means to provide banking services.
Afterpay, which provides a platform for allowing retailers to offer online layby, will be able to provide Westpac transaction and savings accounts and other cashflow management tools to its 3.3 million customers in Australia in in the second quarter of 2021.
Westpac chief executive Peter King said: “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.
“We look forward to working with Afterpay to deliver new products and services.”
Afterpay chief executive Anthony Eisen said: “We believe Australians deserve greater support and insight to help manage their money. 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 is in a unique position to extend and deepen the relationship with our customers and help them to manage their money more seamlessly through savings and budgeting tools. For Afterpay, this is clearly just the beginning as we explore this opportunity globally.”
Westpac’s general manager, Corporate and Business Development, Macgregor Duncan, said: “We have built the platform to allow us to collaborate closely with our partners, and we are excited to work with Afterpay to pioneer services relevant to, and reflective of, its customer base and unique business model.”