Fintech
Airwallex Now Offers Australian Businesses Access to Retail Investments
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Airwallex, an Australian-founded financial platform, has 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 which Aereiwallex has held since 2016 for its payment and currency exchange activities.
The new license allows Airwallex to extend its Airwallex Return service to retail clients, lowering the minimum investment threshold to AUD 10,000 (or equivalent amount in US dollars).
This initiative aims to meet the growing demand from Australian SMEs looking for alternatives to traditional banks to maximise savings during the economic crisis.
Airwallex Yield was initially launched for wholesale clients eight months ago, allowing them to earn yields on AUD and USD balances without having to open overseas bank accounts.
Since its launch, Airwallex Yield has been available to businesses with a minimum investment of AUD 500,000 or equivalent in US dollars.
Now, with the expanded offering, businesses can invest as little as AUD10,000 in funds that have historically delivered higher returns than traditional bank savings accounts.
Current yields stand at 3.67% for AUD balances and 3.95% for USD balances, compared to the lowest average rates offered by major banks.
The Yield product is managed through a fund of JP Morgan Asset Management, which boasts the highest 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-in periods, offering greater flexibility than term deposits.
Since its inception, Airwallex Yield has managed over AUD 100 million in funds.
Shannon Scott, SVP of Products at Airwallex said:
“We are excited to expand 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 is 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 that businesses have wanted for years.”
Matthew Le, head of sales for Southeast Asia and Australia, global liquidity, JP Morgan Asset Management, said:
“JP Morgan Asset Management is pleased to partner with Airwallex.
As a leading wealth management firm, we have invested in our technology to evolve and meet the needs of financial service providers and the growing demands of today’s customers.”
Featured image credit: edited by Free image