Afterpay (ASX:APT) share price on watch after announcing Westpac (ASX:WBC) partnership

Afterpay Ltd (ASX:APT) and Westpac Banking Corp (ASX:WBC) shares will be on watch on Tuesday after announcing a partnership…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Afterpay Ltd (ASX: APT) share price could be on the move today after signing a partnership with banking giant Westpac Banking Corp (ASX: WBC).

What has been announced?

This morning Afterpay revealed that it has entered into a collaboration agreement to facilitate the introduction of Afterpay savings accounts and cash flow tools for customers in Australia.

According to the release, the new money management services will be facilitated by Westpac's new digital bank-as-a-service platform.

The partnership will allow Afterpay to provide Westpac transaction and savings accounts and other cashflow management tools to its 3.3 million customers in Australia from the second quarter of 2021.

Afterpay expects the service to empower customers to have greater control over their budget, with an efficient and seamless digital user experience.

The company also notes that the collaboration brings efficiency benefits to its existing activities from a risk management and processing cost perspective. In addition, it has the potential to facilitate new revenue streams over time, without needing to develop traditional banking or credit products.

"Global opportunity."

Afterpay's CEO, Anthony Eisen, commented: "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," he said.

This positive sentiment was echoed by Westpac's CEO, Peter King.

He said: "We are very pleased to be able to offer our digital bank-as-a-service platform to one of Australia's most prolific fintech innovations, Afterpay. This collaboration reflects our strategy to meet the changing needs of customers and demonstrates our desire to partner with differentiated business models that provide alternative ways for consumers to spend and manage their finances."

"We look forward to launching our platform in Q2 with Afterpay and will continue to work together to identify ways in which our partnership can add further value to consumers," he added.

In other news.

This isn't the only industry news this morning. Rival Zip Co Ltd (ASX: Z1P) has just announced plans to launch a "Tap & Zip"  option on Visa terminals.

It notes that just 13% of stores in Australia are able to accept buy now, pay later options. Management feels Tap & Zip addresses this significant and untapped customer need.

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Rising share price chart.
Share Gainers

Why Canyon Resources, Nufarm, Paladin Energy, and WiseTech shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Elders, James Hardie, Origin Energy, and SGH shares are falling today

These shares are starting the week in the red. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Gold

Guess which ASX gold stock just rocketed 167% on big news!

Investors are sending the ASX gold stock flying higher on Monday. Let’s find out why.

Read more »

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Up 34% since April, ASX 300 healthcare stock lifts off again today on new milestone

The ASX 300 healthcare stock has been on a tear since hitting one-year lows in April.

Read more »

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition
Mergers & Acquisitions

WiseTech share price storms higher on $3.25b blockbuster acquisition

What is the company spending billions on? Let's find out.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

5 of the best ASX 200 shares to buy in June

Let's see what brokers are recommending to investors for next month.

Read more »

A man looking at his laptop and thinking.
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the benchmark index today.

Read more »