Airwallex branches out into retail investment products with new Australian licence
Airwallex has secured a Australian Financial Services Licence (AFSL) to broaden access to retail investments for its business clients.
Airwallex secures Australian Financial Services Licence
The fintech unicorn is to leverage the licence, granted by the Australian Securities and Investment Commission (ASIC), to extend the range of Airwallex Yield.
Unveiled in November, the product services businesses with a high-yield savings account, issued by K2 Asset Management, that promises “competitive returns on multi-currency balances”, according to a statement at launch.
Initially made available for wholesale customers at a minimum investment of AUD 500,000, Airwallex Yield will now support an extended remit to the broader market for retail investments.
With this, the minimum investment requirement for the product has been lowered to AUD 10,000, effective immediately.
Airwallex says the overhaul will enable business to “invest in funds that have historically returned more than triple the interest rates of saver accounts of the big four banks”, and unlike term deposit alternatives, “avoid lock-up periods and easily move funds between their cash wallet balances and their Yield account”.
Businesses will also have the option to invest in a product that invests through a fund managed by JP Morgan Asset Management.
In comments Airwallex SVP of product, Shannon Scott says the development is “especially timely as Australian SMEs face economic challenges and rising costs”.
“This move into investment products underscores our role as a comprehensive financial services platform that can help businesses manage their finances more efficiently,” he adds.
Airwallex Yield is just one in a number of embedded finance products and payments, treasury and spend management solutions that the fintech operates to support companies’ growth and cross-border operations.
Shortly before the product’s launch in November, Airwallex also announced its expected expansion into South America through its acquisition of Mexican payment service provider MexPago for an undisclosed sum.
