Airwallex, an Australian-founded finance platform, announced it has been granted an Australian Financial Services Licence (AFSL) by the Australian Securities and Investments Commission (ASIC), becoming the first major payments company to offer businesses access to retail investment products.
This is an expansion from AFSL, Air War Rex The company has held the stake since 2016 for payment and foreign exchange operations.
With this new license, Airwallex will Air Wallex Yield It has launched its offering to retail clients and lowered the minimum investment to 10,000 Australian dollars (or the US dollar equivalent).
The move is aimed at meeting growing demand from Australian small and medium-sized businesses seeking alternatives to traditional banks to maximise savings during the economic downturn.
Airwallex Yield was initially launched eight months ago for wholesale customers, allowing them to earn yield on their Australian dollar and US dollar balances without having to open an offshore bank account.
Since its launch, Airwallex Yield has been available to businesses who have invested a minimum of AUD500,000 or USD equivalent.
The expanded service now allows businesses to invest in funds with a minimum of A$10,000 that have traditionally offered higher returns than bank savings accounts.
Current yields are 3.67% on Australian dollar balances and 3.95% on US dollar balances, although the average rates offered by major banks are lower.
The Yield products are managed through funds from JPMorgan Asset Management, which have the highest ratings from Standard & Poor’s and other major rating agencies.
Airwallex Yield allows businesses to move funds between their cash wallet balances and Yield accounts with no lock-up period, providing greater flexibility compared to fixed term deposits.
Since its inception, Airwallex Yield has managed over AUD100 million in capital.
Shannon Scott, SVP of Products at Airwallex, said:
“We are excited to expand Yield and position Airwallex as a modern alternative to banks for businesses of all sizes. Our entry into investment products underscores our role as a comprehensive financial services platform helping businesses manage their finances more efficiently.”
“This is especially timely as Australian small businesses face economic challenges and rising costs. Yield empowers them with flexibility, attractive rates of return and multi-currency capabilities. It’s a solution businesses have been waiting for for years.”
Matthew Le, head of Southeast Asia and Australia Sales, Global Liquidity at JPMorgan Asset Management, said:
“JP Morgan Asset Management is pleased to partner with Airwallex.
As a leading asset management firm, we have invested in technology to evolve and meet the needs of financial service providers and the growing demands of today’s customers.”
Featured Image Credit: Free Pick
