Xinja launches card and app, gets set to challenge Australia’s banking market

Xinja launches card and app, gets set to challenge Australia’s banking market

Xinja, which is building the first Australian, independent, 100% digital ‘neobank’, has launched its prepaid travel and everyday spending card and its app.

The card is a prepaid, tap-and-go card, with no ATM fees here or overseas, and low international transaction/FX fees that make it a very competitive travel card. The app allows users to lock the card instantly, if it is lost, and is being designed to let users track their spending, with more features to be rolled out over the next few months.

The card is being sent out to Xinja’s waitlist, made up of consumers who have signed up to be part of the development of a new bank in Australia – one that is 100% digital, independent of the existing legacy banks and designed with consumers in mind and with their help.

“The card and the app are important steps for Xinja,” said Xinja CEO and founder Eric Wilson. “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.

“We are working with our customers, developing a product that meets their needs and earns their trust. Our aim is to build a bank that helps our customers meet their goals.”

Prepaid cards have been the launch pad for neobanks in the US and the UK, where the likes of Monzo have been hugely successful, quickly building a customer base.

“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,” Mr Wilson said.

“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.

“Beyond that we are looking to develop a marketplace model, where we integrate multiple products into our platform, offering users an integrated service and great value from a range of partners.”

Xinja was granted an Australian Credit Licence from the Australian Securities and Investments Commission in February.

It has also applied for an Australian Financial Services Licence (AFSL) from ASIC and it has applied to the Australian Prudential Regulation Authority for a banking licence that will allow Xinja to become a Restricted Authorised Deposit-taking Institution (RADI). Those applications are progressing.

“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,” Mr Wilson said.

Xinja has raised over A$10m so far, with a substantial portion of that via Australia’s first crowdfunding. The recent removal of regulatory barriers allowed Xinja to raise $500,000 in less than 24 hours through a crowdfunding campaign with Equitise.

That campaign closes on March 31.

So far, over $1.8 million has been raised which goes towards a $10 million Series B fund raise. It is expected that Series B raise will be oversubscribed.