Here’s how to profit from Australia going cashless

Australia is heading towards being a cashless society. Is that a good thing? And how can we profit from that?

Although more of us are paying for things by means other than cash, there is a growing amount of physical cash out there. There will be even more soon after the announcement of the new Australian $20 note.

We are supposedly the sixth-most cashless society in the world. I’m certainly one of those people that hardly ever use cash. Nearly every shop and café has a EFTPOS machine these days, I can’t remember the last time I used an ATM. A cash-only takeaway shop would be the last time I paid for something with physical money.

RBA boss Dr Lowe has previously said that for each Australian there are thirty $50 banknotes and fourteen $100 banknotes. I’m definitely not carrying around almost $3,000 in cash everywhere, not even a thirtieth of that. Plenty of those notes are probably overseas. Think of all the foreign exchange places and banks in overseas countries that would need to keep some Aussie dollars on hand.

But it’s certainly true that we’re becoming more of a cashless society. In the retail world we’re seeing a big shift towards buy now, pay later businesses like Afterpay Touch Group Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and FlexiGroup Limited (ASX: FXL).

Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) are also benefiting from people going cashless. It’s expensive to operate a large network of branches and ATMs, and they have to keep them all supplied with cash.

The biggest beneficiaries of people going cashless are the payments businesses of Visa, MasterCard and PayPal. Obviously they’re not listed on the ASX. But one of the most concentrated ways to get exposure to that theme is with the listed investment company (LIC) MFF Capital Investments Limited (ASX: MFF). At the end of September 2019, over 31% of MFF’s portfolio was allocated to Visa and MasterCard.

Foolish takeaway

The shift to a cashless society is a long process. Eventually cash will disappear, but I think it will be many years until then. MFF Capital would be my favourite way to profit from this area – I don’t want to invest in ASX banks and the buy now pay later sector doesn’t appeal to me, partly because of the high valuations.

The post Here’s how to profit from Australia going cashless appeared first on Motley Fool Australia.

Whether you like physical cash or cashless cash, you’ll love these top ASX shares that send big cash payments to their shareholders every year.

3 ASX Dividend Shares Paying Excellent Cash Dividends Every Year

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn… except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in “The Motley Fool’s Top 3 Dividend Shares for 2019.”

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

More reading

Tristan Harrison owns shares of Magellan Flagship Fund Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended FlexiGroup Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019

Source link Finance News Australia

Enter your Email Address

Leave a Reply

Your email address will not be published. Required fields are marked *

Social Media Auto Publish Powered By :