Holders of Afterpay Ltd (ASX: APT) shares most likely know they own a buy now, pay later (BNPL) company. But the ASX tech giant has a bit more on its plate nowadays.
Earlier this week, Afterpay launched its newest offering, veering far closer to the banking sphere than the company has previously ventured.
Using Westpac Banking Corp (ASX: WBC) as a service, Money by Afterpay provides users with a debit card, digital wallet, and the option to open up to 15 savings accounts. It may also start to offer home loans in the future.
At the time of writing, the Afterpay share price is $115.21, 0.9% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.95% right now.
Let's take a look at Afterpay's newest offering.
Do owners of Afterpay shares now hold a bank?
According to the company, Money by Afterpay is "built for the Afterpay generation" and is aimed at Gen Z and Millennial customers.
The app offers Instagram-esque 'stories' giving users insights into their saving and spending habits.
Money by Afterpay users take advantage of 'superpowers' such as the ability to turn some historic transactions valued at more than $200 into a BNPL purchase.
It also offers 0.75% interest per annum on savings accounts if a user has a combined savings balance of $50,000.
The Money by Afterpay app dropped in Australia on Tuesday. It can currently be downloaded from the Apple Inc (NASDAQ: AAPL) app store. An Android version is expected to launch in 2022.
Further, according to reporting by The Australian, Westpac and Afterpay are both considering adding mortgages to Money by Afterpay's offerings.
Additionally, Afterpay's suitor, Square Inc (NYSE: SQ), holds a banking licence in the US. Thus, the publication also claims Afterpay's offerings could move even closer to that of a bank following the proposed takeover.
As The Motley Fool Australia reported earlier this week, Square's CEO, Jack Dorsey is particularly excited about the companies' synergies and differences.
Afterpay executive vice president of new platforms Lee Hatton commented on the new offering:
With more than 3.6 million Afterpay customers in Australia and more than 1 million of those customers in our sweet spot audience for this offering, we have the ability to introduce Money by Afterpay as the way to look after their money. This introduction is only the beginning as we help our customers build their money confidence through an ongoing roadmap of new features and useful, inspiring content.
Right now, the Afterpay share price is 3% lower than it was at the start of 2021. However, it has gained 0.6% over the last month.
