Ahead of the Curve – Banks to Lower Cost of Tap and Go Technology
24 September 2018
Perhaps most of our readers will not be surprised to hear that, according to research, Australian small and medium sized businesses waste an average of 216 hours (about 29 working days) each year counting and banking cash. This is the cost of accepting cash. In recent years however, technology has provided new solutions to reduce this cost of handling cash – contactless technology is now the preferred method of payment in Australia, with 51 per cent of consumers using it. A survey by Square of 1044 consumers and 400 small to medium business owners and managers around Australia found the use of tap technology is more popular than cash, which is used by 24 per cent of respondents, or inserting a credit or debit card with a chip and entering a pin, which is used by 22 per cent. Mobile wallets, such as Apple Pay, are still at the early adopter stage, with only 2 per cent preferring this method.
However, the nation’s big four banks still charge fees for routing the payments in their network, which is an extra cost to small business owners. The good news is that banks are starting to tackle this issue and reduce their routing charges by investing in technology. NAB is already trialling its low-cost routing technology in at least 40 stores, and is expected to implement the technology by the end of the year. Commonwealth Bank’s roll out will not be complete until the end of financial year 2019. Westpac and ANZ will follow suit in 2019 also.
The moves by the banks are expected to reduce the burden on small businesses when it comes to handling increasingly cashless payments.
Asian buyers Eyeing Yarra Valley Wineries
Victoria’s Yarra Valley wine region north-west of Melbourne is pinging loudly on the radar of Chinese investors with two boutique vineyards recently changing hands for a combined $13 million.
In Woori Yallock, a local buyer backed by overseas funds sourced from Asia has bought the Hillcrest Vineyard and Winery at 31 Phillip Road from winemakers David and Tanya Bryant for $4.6 million.
The 17.5-hectare self-sufficient estate, which the Bryants acquired for $495,000 in 1999, includes a 48-year-old vineyard with eight hectares planted to chardonnay, pinot noir, cabernet sauvignon and merlot. It also includes a winery, wine museum, large residence and guest accommodation. Hillcrest was rated five stars by the 2018 Haliday Wine Companion, which notes it exports its wines to Singapore.
In the second deal, the Chinese owners of the Wild Cattle Creek Estate, near Seville, have realised an apparent capital loss, after selling the property to another Chinese buyer for $8.5 million. Property records show they paid $9.4 million for the estate just over two years ago.
Wild Cattle Creek, at 473 Warburton Highway, is a well-known Yarra Valley winery and wedding and events venue with onsite accommodation. It was previously called the Langbrook Estate vineyard under owners Kevin Dixon and Graham Smith who then sold it to China’s Lusheng Pty Ltd, represented by Tianfang (Tom) Wang.
“The new owners of Hillcrest Vineyard will look to export wines into China, where the Yarra Valley wines are popular,” Mr Du said.
“Over the past 24 months there has been growing demand from Asian investors for vineyards in the area, They see the Yarra Valley as offering good opportunities.”
By Lee Xie (Senior Project Manager)
We’d love to hear your opinion and continue the discussion. Please contact lee@firstchoicebb.com.au or 0405 459 528 to discuss.
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DISCLAIMER – Any financial information within this email has been compiled by First Choice Business Brokers to provide broad general information about business opportunities and the state of the market. First Choice Business Brokers makes no representations or warranties in relation to the financial information in this email. For purchasers looking to buy, we strongly recommend that you carry out your own investigation or consult a qualified accountant before making a purchase.
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