Airwallex, an Australia-founded financial platform, announced that it has become the first major payments company to be granted an Australian Financial Services License (AFSL) by the Australian Securities and Investment Commission (ASIC) to offer businesses access to retail investment products.
This marks an expansion from the AFSL that Airwallex has held since 2016 for its payments and foreign exchange business.
The new license allows Airwallex to extend its Airwallex Yield service to retail clients, lowering the minimum investment threshold to AUD 10,000 (or US$ equivalent).
This move aims to meet the growing demand from Australian SMEs seeking alternatives to traditional banks to maximise savings during the economic downturn.
Airwallex Yield was initially launched for wholesale customers eight months ago, enabling them to earn returns on AUD and US$ balances without opening foreign bank accounts.
Since launching, Airwallex Yield has been available to businesses with a minimum investment of AUD 500,000 or US$ equivalent.
Now, with the expanded offering, businesses can invest with a minimum amount of AUD 10,000 in funds that have historically provided returns higher than those of traditional bank saver accounts.
Current returns stand at 3.67 percent for AUD balances and 3.95 percent for US$ balances, compared to lower average rates offered by major banks.
The Yield product is managed through a fund by J.P. Morgan Asset Management, which holds top ratings from Standard & Poor’s and other leading agencies.
Airwallex Yield allows businesses to move funds between their cash wallet balances and their Yield account without lock-up periods, providing greater flexibility compared to term deposits.
Since its inception, Airwallex Yield has attracted over AUD 100 million in funds under management.
Shannon Scott, SVP of Product at Airwallex said,
“We’re excited to expand upon Yield to position Airwallex as the modern alternative to banks for businesses of all sizes. This move into investment products underscores our role as a comprehensive financial services platform that can help businesses manage their finances more efficiently.
It’s especially timely as Australian SMEs face economic challenges and rising costs. Yield empowers them with its flexibility, attractive rates of return and multi-currency capabilities – a solution businesses have been craving for years.”
Matthew Le, Head of South East Asia & Australia Sales, Global Liquidity, J.P. Morgan Asset Management, said,
“J.P. Morgan Asset Management is delighted to partner with Airwallex.
As a leading asset management firm, we have invested in our technology to evolve and meet the needs of financial service providers and the growing demands of customers today.”
Featured image credit: Edited from Freepik
