Digital bank Xinja launches prepaid card and app
The new prepaid everyday spending card features zero ATM fees in Australia and overseas.
Banking startup Xinja, which is set to become Australia's first digital only bank, has today launched its prepaid everyday spending card and app. The card is initially being sent out to Xinja's wait list of consumers who have signed up to be part of the bank and will be available for all consumers at a later date.
Xinja is aiming to provide an alternative banking solution to Australians outside of the traditional banking services currently in the market. It is completely digital and run through an app, enabling consumers to manage their money solely through their smartphone.
Xinja's new card is prepaid and offers tap-and-go functionality, and will act as an everyday spending card for purchases within Australia and overseas. It charges no ATM fees in Australia or globally, making it a good option for travellers. However, it does charge a currency conversion fee of 3.5% of the transaction value. Users can top up their prepaid card via a direct transfer from their existing bank account. However, the maximum amount users can load onto the prepaid card is $999.
The new Xinja app also launched today allows users to track their spending on their prepaid card and instantly lock their card if they've misplaced it. The app also divides transactions into various spend categories, so users can get a better understanding of exactly where their money is going.
Xinja CEO and founder Eric Wilson said in addition to these features, new functions for the prepaid card and app will be rolled out over the coming months. “The card and the app are important steps for Xinja. This isn’t a finished product, it’s a step in our journey with our customers. We are delivering a first-base solution that they have asked for, and from here we start adding features and capabilities based on their feedback, requests and ideas."
“The prepaid card offers users a chance to help bring a revolution to Australian banking, to load their disposable income on a tap-and-go card, track their spending, and submit ideas for the app as we develop. “Xinja will build on the app and prepaid card to develop a full suite of banking services for its customers, including home loans, which are coming soon and a transaction account, which should follow in a few months subject to our receiving
a licence," said Wilson.
In order to offer banking products like a transaction account, Xinja needs an Australian Financial Services Licence from regulatory body ASIC, as well as a banking licence from APRA which will allow the neobank to accept deposits. Xinja has applied for both licences, which are still pending. In May 2017 the government announced it would reduce the barriers for fintech players trying to enter the banking sector, which will hopefully increase innovation and competition in the industry. This includes allowing smaller players, like Xinja, to call themselves a bank.
“Our intention is that Xinja will offer Australian consumers an entirely different banking experience, one that actively helps them manage their money and hit their goals," said Wilson.
- Click Frenzy™ Travel 2019 brands and deals reveal | Sale on at 7pm
- Japan’s largest Internet company launches cryptocurrency exchange service
- Binance announces Venus: A major localised stablecoin project now underway
- Citi customers can buy now pay later at Kogan.com
- Bakkt cleared to launch 23 September to provide “a trusted ecosystem”