Australian fintech Afterpay has announced that it will be closing down its Money app in October just a year after launching, saying that the firm’s acquisition by Jack Dorsey’s Block “means our focus is shifting in a new direction”.

Debit cards and Money accounts from the fintech company were introduced in collaboration with the largest bank in Australia, Westpac. In October 2020, Afterpay became the first customer to sign up for Westpac’s banking-as-a-service (BaaS) platform. The cooperation has finally come to an end with Money’s shutdown.

According to the information posted on Afterpay’s website, the company will stop accepting new users right now, and as of October 10, 2022, customers won’t have access to their Money accounts.

“Our decision to move in this new direction is due to our exciting next chapter with Block, particularly as we think about Cash App opportunities here in Australia,”

                                                         Lee Hatton, the lead executive of Money by Afterpay.

Afterpay has instructed users to withdraw all of their funds from their accounts as part of the closure process. The firm has also established a daily payment limit of AUD 10,000, which can be increased upon request, according to the company.

In order to “prevent unsuccessful repayments,” it has also requested that consumers delete their Money cards from their Afterpay buy now, pay later (BNPL) accounts.

Following Money’s exit from the market, Block, which bought Afterpay in January for $29 billion, plans to introduce its own Cash App in Australia.

“A change of ownership naturally sees partnerships evolve and we have been working co-operatively with Afterpay on this transition to ensure a smooth customer pathway,”

                                                                                       Westpac BaaS CEO Damien MacRae.