Buy now pay later juggernaut Afterpay has joined forces with banking giant Westpac to offer daily transaction accounts.

The move revealed today will enable Afterpay to provide Westpac's 3.3 million customers with everyday banking and savings accounts.

The new deals will begin in the second quarter of 2021.

In Australia, Afterpay has 3.3 million active customers while rival buy now pay later scheme Zip Co has 2.1 million customers.

Westpac's chief executive officer Peter King said the joining of the two companies in offering products would "respond to changing customer needs".

"The platform allows us to combine our banking experience with the innovation of our partners to support new customers experiences," he said.

Westpac CEO Peter King. Picture: Nikki Short
Westpac CEO Peter King. Picture: Nikki Short

While Afterpay's chief executive officer Anthony Eisen said the new partnership would give customers "greater support and insight to help manage their money".

"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," he said in an issued statement.

"For Afterpay this is clearly just the beginning as we explore this opportunity globally."

Afterpay enables customers to buy items and pay them off later in four equal fortnightly payments.

If the customer fails to meet the strict repayment criteria they are hit with late payment fees.

sophie.elsworth@news.com.au

@sophieelsworth

Originally published as Afterpay and Westpac join forces


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