Global payments and financial platform, Airwallex, has become the first company of its kind to be granted an Australian Financial Services Licence for retail investment products by the Australian Securities and Investment Commission (ASIC).

It comes as the company has this week expanded Airwallex Yield to retail clients, with the minimum investment threshold now lowered to AUD$10k (or USD equivalent).

The expansion is designed to meet the growing demand from Australian SMEs seeking alternatives to traditional banks in order to maximise savings during the economic downturn. The expanded Airwallex Yield offering allows customers to invest with a minimum amount of AUD$10K (or USD equivalent), in funds that have historically returned more than triple the interest rates of saver accounts of the big four banks, and avoid lock-up periods.

Since its launch, 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 invests through a fund managed by J.P. Morgan Asset Management. The J.P. Morgan underlying funds hold the highest rating from Standard & Poor’s at ‘AAAm’ grade.

Airwallex SVP of Product, Shannon Scott, said: “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.”

Managing Director, Research, Investments & Advisory at K2 Asset Management Ltd, George Boubouras, 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.”

Head of South East Asia & Australia Sales, Global Liquidity, J.P. Morgan Asset Management, Matthew Le, 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.”