Airwallex becomes first payments company to obtain AFSL for expansion into retail investment products

• Airwallex is the first major payments company to be granted an Australian Financial Services Licence for retail investment products by the Australian Securities and Investment Commission (ASIC)

• Airwallex Yield has been expanded to retail clients this week, with its minimum investment threshold lowered to AUD$10k (or USD equivalent)

• Expansion aims to meet growing demand from Australian SMEs seeking alternatives from traditional banks to maximise savings during the economic downturn

MELBOURNE, AUSTRALIA - Airwallex, the Australia-founded leading financial platform for modern businesses, has become the first major payments company to be granted an Australian Financial Services Licence (AFSL) by the Australian Securities and Investment Commission (ASIC) to offer businesses access to retail investment products. This is an additional licence from the AFSL that Airwallex has held for its existing payments and foreign exchange business since 2016. 

The authorisation from the regulator formalises Airwallex’s move into investment products and signals the company’s evolution toward becoming an end-to-end financial services platform.  

The announcement comes just eight months after Airwallex launched Airwallex Yield to wholesale customers, allowing them to earn attractive returns on their AUD and USD balances without having to open a foreign bank account – a first in Australia. 

With this expansion, Airwallex Yield will be offered to the broader retail market – with a lower minimum investment requirement of AUD$10K (or USD equivalent) – from today onwards.

The expanded Airwallex Yield offering will allow customers to: 

• Invest with a minimum investment amount of AUD$10K (or USD equivalent); 

• Invest in funds that have historically returned more than triple the interest rates of saver accounts of the big four banks; currently a return of 3.67 percent for AUD balances and 3.95 percent on USD balances (compared to a 1.06 percent p.a. and 0.50 percent p.a. respectively*) and;

• Avoid lock-up periods and easily move funds between their cash wallet balances and their Yield account, unlike term deposits.

• With Airwallex Yield, customers can invest in a product that invests through a fund managed by J.P. Morgan Asset Management (J.P. Morgan), one of the world’s most trusted asset management firms. The J.P. Morgan underlying funds hold the highest rating from Standard & Poor’s at ‘AAAm’ grade, and equally high ratings from all leading rating agencies.

• Since launching, Airwallex Yield has been available to businesses with a minimum investment of AUD $500k or USD equivalent. To date, Airwallex Capital Pty Ltd has attracted over AUD$100M in funds under management from customers. 

Airwallex Yield has been designed to be a competitive alternative for businesses because its returns more closely track the RBA cash rate than the rates on offer from traditional providers  – a priority in this current high inflation environment. Businesses could earn more than triple the amount of a saver account with a big four bank by investing with Yield. Yield’s underlying fund, JPMorgan Liquidity Fund, offers a 3.67 percent return on AUD balances and 3.95 percent return on USD balances, compared to an average of 1.06 percent per annum for business saver accounts with the big banks for AUD and 0.50 percent per annum for USD*.

Airwallex SVP of Product Shannon Scott said the company was excited to expand Yield to help businesses capitalise on greater flexibility and returns, particularly during the current economic climate.

“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.”

George Boubouras, Managing Director, Research, Investments & Advisory at K2 Asset Management Ltd (an Airwallex partner and issuer of the Yield product) said, “Cross-border trading companies can benefit from exposure to money market funds that are currently taking advantage of the higher yields on offer due to the higher Fed Funds cash rate in the US and domestically the higher cash rate set by the RBA. 

“The benefits of a blended single multi-currency cash account that offers exposure to multiple currencies in a single account can assist with lower transaction costs and shorter settlement times compared to traditional currency accounts that offer lower yields and are more burdensome.”

Also commenting on the news, 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.” 

Businesses can find out more about Yield and sign up here.

END

*The Airwallex Yield Liquidity Fund (Airwallex Yield, ARSN 678 845 657) is issued by K2 Asset Management Limited (K2) (ABN 95 085 445 094, AFSL No 244393), a wholly owned subsidiary of K2 Asset Management Holdings Limited.This information does not take into account your objectives, financial situation, or needs. It is important for you to read the Product Disclosure Statement (PDS) for Airwallex Yield, which is available at www.airwallex.com.au/terms from Airwallex Capital Pty Ltd (ABN 37 609 653 312, AFSL No. 549026). All investments carry risk. Target returns of Airwallex Yield are net of fees as at 1 July 2024 and indicate past 1-day annualised returns of the relevant underlying JPMorgan Liquidity Funds. 

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About Airwallex

Airwallex is a leading global financial platform for modern businesses, offering trusted solutions to manage everything from payments, treasury, and spend management to embedded finance. With our proprietary infrastructure, Airwallex takes the friction out of global payments and financial operations, empowering businesses of all sizes to unlock new opportunities and grow beyond borders. Proudly founded in Melbourne, Airwallex supports over 100,000 businesses globally and is trusted by brands such as Brex, Rippling, Navan, Qantas, SHEIN and many more. For more information, visit http://www.airwallex.com