Are cash and card on the way out forever? 7-Eleven seems to think so.

At the end of last year, RBA Governor Philip Lowe deemed cash and card transactions a “niche payment”, highlighting that they are becoming less prominent in our day to day activities.

At the end of last year, RBA Governor Philip Lowe, deemed cash and card transactions as a “niche payment” highlighting that they are  becoming less prominent in our day to day activities.

This is being driven by the mobile payment market which is capitalising upon 21st century values of efficiency, convenience and instant gratification. With our smartphones in our pockets 24/7, it is a natural inclination to want to condense every necessity into one place.

The mobile payment industry has taken this idea and run with it, effectively pushing society toward a total eradication of card and cash in favour of either digital wallets, such as Apple Pay, or mobile currency. Nearly every industry – from hospitals, to post offices, to hospitality and public transport – are creating apps for their services, which has led to the use of cash and cards in the real world dropping dramatically. The population are simply linking their debit cards to apps such as PayPal, Uber or Deliveroo.

Major corporations, such as 7-Eleven, are moving towards catering for this shift in transactions. Last week, 7-Eleven opened their first cardless and cashless store in Church St, Richmond. The store has no physical counter – all customers are required to do is scan the barcode of their items on their phones via the 7-Eleven app, which is linked to the customers’ debit card.

Addressing the concern of job-loss and unemployment that unsurprisingly met the announcement of the new store, the company has promised that 7-Eleven employees will be redeployed into customer service roles to “focus on greeting and assisting customers and on delivering the brand’s growing food offer”, 7-Eleven CEO Angus McKay said.

He also said that the launch is part of the chain’s goal to “push the notion of convenience to its absolute limit”, a move that aligns with the wants and needs of the perpetually fast-moving modern customer.

The slow but indisputably steady and promising movement away from cash and card and towards virtual payments bespeaks a larger industry change altogether. Analysts have predicted that the market is anticipated to grow at a compound annual growth rate (CAGR) of 33.8% from 2017 to 2023, eventually reaching a market size of $4,574 billion by 2023.

UNSW Economics professor Richard Holden told The Sydney Morning Herald in December of last year that Australia could be cash-free in just three years – a change that society must adapt to, or else risk getting left behind altogether as the payment revolution presses forward tenaciously.

Reach Markets have access to an investment that offers exposure to the first and only EFT that targets the mobile payment industry (IPAY) which is positioned to capture this anticipated growth as we progress toward a cashless economy. Click here for more information on the investment, or to download the PDS.

*Reach Markets are the advisors assisting on with the management of this offer and may receive fees depending on whether an offer is taken up by investors.

**Units in Sequoia Future Tech – Series 2 are issued by Sequoia Specialist Investments Pty Ltd (ACN 145 459 936) (the “Issuer”) and arranged by Sequoia Asset Management Pty Ltd (ACN 135 907 550, AFSL 341506)(the “Arranger”). Investments in the Sequoia Future Tech – Series 2 can only be made by completing an Application Form attached to the Product Disclosure Statement (“PDS”) dated 14 February 2019, after reading the Master PDS dated 20 May 2019. A copy of the TSPDS, PDS and any other information can be obtained by contacting Reach Markets on (03) 8080 5795 or contacting your financial adviser. You should consider the PDS and Master PDS’ and the full product risk disclosures before deciding whether to invest in Units in Sequoia Future Tech – Series 2. Capitalised terms on the webpage have the meaning given to them in Section 10 “Definitions” of the Master PDS.

The shares offered by this Product Disclosure Statement (PDS) should be considered highly speculative. An investment in the fund is not risk free and potential investors need to consider the risk factors described in the PDS and to consult their professional advisers before deciding whether to apply for shares.

***Investors are not investing in the ETF as they are getting units in Sequoia’s product which then gives them indirect exposure to the IPAY ETF.

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