Airwallex obtains licence to offer retail investment products in Australia

Airwallexa financial platform for businesses, has been granted an Australian Financial Services Licence (AFSL) by Australian Securities and Investments Commission (ASIC) offer retail investment products.

This license is in addition to the AFSL that Airwallex has held for its payments and foreign exchange activities since 2016.

This new approval marks Airwallex’s entry into the investment products market and reflects its goal of becoming a full-service financial services platform. The announcement comes eight months after Airwallex launched Airwallex Yield to wholesale clients, allowing them to generate returns on their AUD and USD balances without opening an offshore bank account, a first in Australia.

With this expansion, Airwallex Yield will be available to the broader retail market, with a lower minimum investment requirement of AUD 10,000 (or USD equivalent).

The expanded offering allows customers to:

• Invest with a minimum amount of AUD 10,000 (or USD equivalent).
• Access funds that have historically earned more than three times the interest rates of savings accounts at the Big Four banks, currently offering a daily yield of 3.67% for AUD balances and 3.95% for USD balances.
• Transfer funds between your Cash Portfolio balances and your Yield Account without lock-up periods, unlike traditional term deposits.

Airwallex Yield invests through a fund managed by JP Morgan Asset Management, whose underlying funds benefit from high ratings from the main rating agencies.

“We are excited to expand Yield to position Airwallex as the modern alternative to banks for businesses of all sizes,” said Shannon ScottSenior Vice President of Products at Airwallex. “This move into investment products underscores our role as a comprehensive financial services platform that can help businesses manage their finances more effectively.

“This is particularly timely as Australian SMEs face economic challenges and rising costs. Yield offers them flexibility, attractive rates of return and multi-currency capabilities, a solution businesses have been looking for for years.”

Also commenting on current events, Georges Boubouras, Managing Director, Research, Investments and Consulting at K2 Asset Management Ltd. (Airwallex partner and issuer of the Yield product), said: “Cross-border trading firms can benefit from exposure to money market funds which are currently benefiting from the higher yields on offer due to the higher federal funds cash rate in the US and, domestically, the higher cash rate set by the RBA.

“The benefits of a single, mixed multi-currency treasury account that provides exposure to multiple currencies in a single account can help reduce transaction costs and settlement times compared to traditional foreign exchange accounts that offer lower yields and are more restrictive.”