Airwallex Unveils Product to Help Firms Grow Idle Cash

Fintech firm Airwallex has unveiled a new investment product aimed at helping businesses earn returns on unused funds, entering a competitive market where rivals also court companies seeking better yields on spare cash.

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Rolled out on July 28, the product invests in money market funds (MMFs) and offers returns of up to 1.29 per cent per annum for Singapore-dollar funds and up to 3.84 per cent for US-dollar funds.

The new Airwallex Yield product is aimed at small business customers or customers on Airwallex, said Mr Arnold Chan, Airwallex's general manager for the Asia-Pacific excluding China.

"Airwallex Yield will allow businesses to earn returns on their surplus Singapore-dollar and US-dollar funds by investing through investment-grade money market funds, while maintaining access to both liquidity and control over their cash," he told The Straits Times.

An MMF invests in a range of liquid, low-risk assets, which typically include cash and short-term instruments such as treasury bills, commercial paper, and certificates of deposit.

Airwallex's yield product invests in several Goldman Sachs and Fullerton funds.

The Singapore launch follows earlier roll-outs in Australia and Hong Kong. Since its November 2023 debut in Australia, the product has attracted about US$200 million (S$257 million) in funds.