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Afterpay to launch banking app in October to launch banking app in October BENGALURU: Afterpay Ltd will launch its will be tested by its Australian staff soon, and Afterpay's dominance in , while banking app in October to widen its offerings the company said it has got a financial service Commonwealth will soon launch its beyond buy now, pay later (BNPL) services licence to provide debit cards and general own BNPL service. Apple is also working on for its 3.5 million-plus Australian users as financial product advice. its own offering, according to a report. competition intensifies, the company said Afterpay users will also be able to set sav­ Shares of Afterpay climbed 1.9%, while the yesterday. ings goals with to 15 separate accounts, broader market fell more than half a percent. The move by Afterpay into banking will test designed to offer greater money management For now, Afterpay will launch the app only the reach of its relationship with users after a tools. in Australia, where BNPL adoption is higher year of explosive growth that saw more peo­ RBC Capital Markets said the accounts than elsewhere with around 30% of adults ple choose to pay in installments for everyday would help Afterpay save on processing fees having a BNPL account. items during the pandemic. and improve its margins, apart from offering The company's main global rival, Klama, Afterpay hopes those same users will now a “large revenue stream from referral fees has a banking licence in Europe. Klama is a be willing to deposit their salaries in saving across a broad range of banking products”. Swedish fintech company that provides accounts created in partnership with After the BNPL sector's rapid growth over online such as payments Australia's No 2 lender, Banking the past year, bigger companies are looking for online storefronts and direct payments Corp, earning interests of 1% per year. for a piece of the pie. along with post-purchase payments.- The new app, called 'Money by Afterpay,, PayPal Holdings is looking to challenge