MoneyMe launch virtual credit account ahead of listing

MoneyMe launch virtual credit account ahead of listing

Fintech MoneyMe will list on the ASX tomorrow, but that hasn't stopped the company from making one last announcement as a private company.

The group has launched a product called Freestyle, a virtual credit account, which MoneyMe hopes will replace the need for a physical credit card.

Freestyle allows users to use their smartphone as a credit card to access a line of credit up to $10,000.

The product has been created in partnership with EML Payments (ASX: EML), and can be used anywhere you can use Mastercard or tap & pay, and can be used to send money to anyone.

Customers that use Freestyle for payments get up to 35-days interest free.

MoneyMe founder and CEO Clayton Howes says Freestyle is the next generation of credit accounts.

"Creating Freestlye is the next giant leap for MoneyMe and will be the way of the future for the way young people use money," says Howes.

"In the future people will not be able to believe you had to look in the mailbox for days or weeks waiting for a piece of plastic to arrive and, in a cashless society people didn't have an easy way to give each other money digitally through their phones."

"Freestyle is the 'buy-now pay-later' (BNPL) of the future. The fact that it's here in the run-up to Christmas will unlock retail spending this festive season and make the whole shopping experience easier. In fact, we are already seeing wide use across online shopping, tap and pay and even linking to third party accounts like Uber eats and iTunes."

When it debuts on the ASX tomorrow MoneyMe will be debt free and profitable.

The company expects more than $340 million in loans to originate in 2020, with revenue expected to reach $46 million.

In September MoneyMe launched ListReady, a BNPL platform for the real estate marketing sector.

The platform allows vendors to postpone up to $25,000 of property marketing costs until settlement.

Since its launch over 1,000 real estate agents have signed up to the platform and have processed more than $2 million worth of listings.

MoneyMe primarily targets the digitally savvy Millennial market and has distributed more than $300 million across a total of 210,000 loans since its founding in 2013.

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