Aussie Finance Blog

Australian personal finance news, tips and advices.

Contactless payments statistics in Australia

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Last month I published an article about contactless payments and it seems like it’s a hot topics nowadays because Westpac released its Visa contactless payments statistics for 2017.

They claim that Visa payWave contactless payments increased to 325 million in 2017, which is a 25% uplift compared to 2016. There were 67 million more payments in 2017 than the year before.

In the first month of 2017, Visa reported more than 24 million contactless payments, which by the end of the year increased to over 33 million. ... (read more)

Contactless Payments: How Do They Work?

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Are you someone who absolutely hates how long it takes to make a transaction using a credit or debit card? Do you worry about card fraud a lot? If so, you will love contactless payment systems, which involve the use of contactless cards, stickers, key fobs, mobile devices, and wearable gadgets.

In a nutshell:

  • It is secure. You don’t need to hand over your card to the cashier. For the entire transaction, the card never leaves your hand.
  • It is fast. You don’t need to enter a PIN or leave a signature for purchases under $100.
  • It is easy. You just need to hold the card close to the terminal.

Contactless payments make life a tad easier for the average consumer. 

History

Contactless cards have been available in Australia since 2006 but it only started to gain traction in the last few years. From the 7.6 million cards issued in 2010, the number grew to 18 million in 2014. With more and more retailers accepting contactless payments, the total number of contactless cards in Australia should reach 33.9 million in 2019, Timetric predicts. ... (read more)

How to buy property with No Deposit

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Using a guarantor to borrow more than 100% of your property’s value

It is possible to borrow up to 105% of a property’s value through some lenders, with the help of a guarantor. This has a number of benefits, including allowing you to buy a property without a deposit, and – as we explore later, can also save you from the cost of lender’s mortgage insurance (LMI) that can apply to more highly leveraged loans. ... (read more)

5 Fundamental factors that influence the foreign exchange market (infographic)

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What makes the prices of currencies move on the open market? This is one of the first questions that virtually every trader tries to answer. The reality is that values fluctuate constantly in the currency markets and, more often than not, they are at the mercy of the countless trends and influences found throughout society. 

Factors that Influence
Geopolitical turbulence, macroeconomic policy, government legislation, and technological breakthroughs all rank among the most influential world events on forex prices. Events which affect the forex market can be as benign as a democratic election which returns the predicted outcome, or as unpredictable as the outbreak of a war, or a natural disaster. ... (read more)

How to Live Within your Means Whilst still Enjoying a Takeaway

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“Brick Oven Special Pizza” (CC BY-SA 2.0) by Mike Saechang

Enjoying a delicious freshly-cooked takeaway meal at home is one of life’s simple pleasures. It’s a moment in time when you can relax and unwind with family or friends and sample some of your favourite foods without even having to lift a finger in the kitchen yourself. Unfortunately, for people who need to tighten their financial belts to save money for a house deposit or to pay off that loan, takeaways tend to be one of the first things binned from the luxuries list. That’s without even attempting to find other ways of cutting back and keeping enough cash for a couple of takeaway treats each month. ... (read more)

What Is NPP, the New Payment Platform?

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The NPP (New Payment Platform) is an innovative platform to give Australian consumers and institutions a new way to make everyday payments. Also known as the New Payments Platform, the NPP will allow Australians to make low-value payments 24 hours a day in less than 30 seconds. The system will operate seven days a week, 365 days a year, with no holiday breaks.

Since Australian business—just like the global economy—never sleeps, a round-the-clock payment system that can get payments into the right hands in less than a minute is a real boon for the country. The NPP is the real-time payments infrastructure that Australians need to kick their economy up to the next level. ... (read more)

What is an Open-End Loan

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Open-end loans provide funds for projects, vacations, hobbies and more. They deliver access to an ongoing line of credit that can be redrawn and re-purposed anytime, if loan conditions are being met. Credit card owners may not be aware, but they also rely on a line of credit and an open-end loan. In other words, if a loan is flexible and doesn’t have an exact date for repayment, it is an open-end loan. ... (read more)

What Is a Line of Credit

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Fluctuating fortunes mean there will always be times when assistance is required to plug financial gaps, pay bills and keep the business afloat. There are options for quick finance, such as credit cards, but interest repayments can make them cost-prohibitive in many situations. An alternative loan option is a line of credit, with lower interest rates and other budget-friendly features.

A bank line of credit provides customers the opportunity to borrow additional funds or utilise equity. Banks extend lines of credit (LOC) for a multitude of purposes, from home renovations to business expansion and more. The most well-known of this loan type is the home equity line of credit (HELOC), usually used for renovating or remodelling established residences. A line of credit is also accessible to the self-employed, those with inconsistent earnings, and people wanting to get their business off the ground. ... (read more)

How to Live on Less Money in Australia

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As the cost of living rises, more Australians are teetering close to the financial abyss. Our consumer driven society has generated tremendous financial rewards for a minority of the population at the expense of everyone else, and the gap between rich and poor is wider than ever. We can’t all be rich, but nobody enjoys being poor, and while opting out of capitalist society is a dream worth considering, it isn’t possible for people with ongoing expenses, obligations, or a family to feed. ... (read more)

Why is Savings Considered a Financial Investment

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There are features unique to both financial saving and investing, and understanding their different attributes is important. Saving preserves and protects money, while also accruing compound interest, whereas investing allows money to grow within share market fluctuations. Both saving and investing are used as short and long-term strategies for financial gain.

Investing entails greater risk and is usually undertaken with astute financial guidance. On the other hand, saving money and accumulating capital is less complex and more familiar to most people. Saving with a bank is considered a safe alternative to rolling the dice on shares, especially if finances aren’t fluid enough to cover any losses. It’s possible to get rich quickly, but most fail trying, while the get-rich-slowly savings method will work for anyone with patience and foresight. ... (read more)