Airwallex deposits an Australian Financial Services Licence for retail investments

International payments platform Airwallex has been granted an Australian Financial Services Licence (AFSL), allowing it to offer its high interest deposit account to retail users.

While the fintech unicorn already had an ASFL for the past eight years for its existing payments and foreign exchange business, the new one means it can offer its high-interest deposit account, Airwallex Yield, to the broader retail market at a lower minimum investment A$10K (or USD equivalent).

Yield launched eight months for wholesale customers offer higher returns on their AUD and USD balances without having to open a foreign bank account.

Airwallex is first major payments company to receive an AFSL from the corporate regulator, the Australian Securities and Investment Commission (ASIC), to offer businesses access to retail investment products. 

Airwallex SVP of product Shannon Scott said Yield was designed to be a competitive alternative for businesses because its returns more closely track the RBA cash rate.

“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,” he said.

“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.”

Yield’s underlying fund, the JPMorgan Liquidity Fund, offers a daily 3.67% per annum return on AUD balances and 3.95% return on USD balances. It also enables businesses to avoid lock-up periods and easily move funds between their cash wallet balances and their Yield account, unlike term deposits.

Since its launch last year Airwallex Yield has been available to businesses with a minimum investment of A$500,000or USD equivalent. To date, Airwallex Capital Pty Ltd has attracted more than $100 million in funds under management from customers.