Airwallex Launches Yield Account for Businesses in Australia

Published 5 months ago

Airwallex, the global financial platform, has launched a new product in Australia that allows businesses to earn returns on their US-dollar balances without having to open an overseas bank account.

Doubling Returns on AUD Funds

The new product, known as Airwallex Yield, offers Australian businesses more than double the returns on AUD funds when compared to the big banks. This is achieved without imposing minimum lock-up periods or using term deposits. Currently, the market-leading rates for AUD and USD balances are 3.39 per cent and 4.07 per cent respectively, a significant increase compared to the average of 1.38 per cent for AUD and 1.50 per cent for USD with the big banks.

No Lock-up Periods

Airwallex Yield allows customers to avoid lock-up periods and move funds with ease between cash balances and their Yield account. This flexibility contrasts with the restrictions of term deposit accounts.

Investment Through Trusted Wealth Management

Funds in the Yield product are invested through J.P. Morgan Asset Management, one of the world’s most trusted wealth management firms with the highest ‘AAAm’ grade from leading rating agencies.

Airwallex Co-founder and CEO, Jack Zhang, stated that the company aims to reduce the friction in financial operations and assist businesses in managing cash flows. Zhang highlighted that Airwallex plans to expand into new areas as traditional banks are failing businesses.

Minimum Initial Investment

Luke Latham, Airwallex Australia and New Zealand Managing Director, announced that Yield would be offered to customers who meet a minimum initial investment threshold. A broader rollout to other markets and customers, along with the inclusion of additional currencies, is planned for 2024.

Latham emphasised that Yield is designed to help businesses earn returns on their surplus funds in AUD and USD, offering an escape from the inflexibility and low returns of traditional banks. He added that Yield addresses a range of business needs and offers the flexibility and higher returns that businesses desire.

Changing the Business Landscape

Airwallex’s new product is set to change the way businesses operate in Australia, giving them more options to earn returns on their funds, especially those raising money in USD. It also offers a solution for businesses facing unexpected cash flow needs with funds locked in a term deposit account or those with idle funds between sales seasons and inventory orders.