Category: Finance & Capital

Cash has always been king in Japan—and continues to be the primary payment method used. But over the past year, the country has made inroads into becoming more of a cashless society via significant investments in the mobile payments space.

We forecast there will be 23.9 million proximity mobile payment users in Japan this year, making up 21.5% of the country’s population. That’s a sizable increase from 2019, when 19.1 million people in Japan made a mobile point-of-sale (mPOS) transaction.

By 2023, that figure will grow to 27.6 million, which means that a quarter of the population will have used their device to complete an mPOS transaction.

This shift is captured in polling by Line Research published in February 2020. Roughly 38% of smartphone users in Japan surveyed said they used their mobile device to make a payment at a physical store in 2019. That’s an increase of 25 percentage points from the year prior.

While it certainly seems that many consumers in Japan are becoming more comfortable with transacting this way, there’s a lot of room for growth. According to the same Line Research poll, the number of respondents who reported using cash at physical stores decreased by nearly 10 percentage points in 2019 from 2018, but a sizable 62% of respondents said they still used this payment method as of December 2019.

The Japanese government has taken steps to encourage consumers to use mobile payments—like its cashless rebate program, which it rolled out last year. “The rewards program was launched to offset the impact of the consumption tax hike in October 2019,” said Cindy Liu, eMarketer senior forecasting analyst at Insider Intelligence. “Under the program, consumers who used cashless payments at specified outlets could receive cash back or reward points worth up to 5% of the value of those transactions.”

QR code payment systems, including PayPay and Line Pay, are also driving growth.

“Japan is betting big on QR codes as consumer payment preferences begin to change,” Liu said. “QR codes don’t require huge investments from vendors, and it is also simple and easy to use for consumers.”

This year was supposed to be Japan’s big cashless push, with the Summer Olympics and its partnership with Visa aimed at bolstering mobile payment adoption in Tokyo and the rest of the country. Due to the pandemic, however, the games have been postponed to 2021.

“COVID-19 has accelerated the push toward cashless payments as consumers avoid the use of cash and plastic cards,” Liu said. “And with the Olympics pushed back to 2021, we can expect the Japanese government to continue to invest in mobile payment technology as part of its measures to keep the games safe.”

Japan’s Cashless Vision Is Starting to Come to Fruition [E Marketer]

Anyone who has studied finance, even for just one day, could tell you that building a diversified investment portfolio is critical to success, primarily by minimizing risk and maximizing opportunity. Nevertheless, smart diversification is easier said than done. Your investment strategy now could determine your financial success for years to come. Making the wrong diversification choices can easily end up being just as risky as not diversifying at all. So how can you gear your portfolio toward financial success? These six tips might help.

1. Quality over quantity

Simply claiming a large number of investments doesn’t necessarily mean your portfolio is properly diversified. If you typically focus on U.S.-based stocks located, you may want to expand outward into bonds and international opportunities. Two of the most important factors in building variety are value and growth. Some investments are lucrative because they are already valued highly. Others are valuable because of their potential for growth. Be sure your portfolio covers each.

2. Smart investors have cash

In addition to stocks, bonds and real estate, a truly secure investment portfolio will include a large amount of cash. Cash provides security and stability and protects your other investments from unforeseen circumstances. Too many investors have become so aggressive that they leave themselves with no cash on hand to weather difficult economic situations.

Not only does cash provide stability, but it also allows investors to quickly take advantage of unique situations. For example, in 2015, Warren Buffet — who is famous for keeping large amounts of cash in his portfolio — was in a position to purchase 1.6 million shares of Wells Fargo when the stock price suddenly dropped.

When you build security and liquidity in your portfolio through cash, you’ll not only be able to come out on top amidst even the most difficult economic downturns, but you’ll also be able to beat other investors to the punch when the right opportunities present themselves.

3. Limit guesswork through franchising

Franchising is a tried-and-true investment strategy with low risk and high potential, given that owners borrow from systems with pre-existing brand recognition and proven success rates. In fact, according to a paper by Seth Lederman of Frannexus, which works with career professionals on franchising opportunities, “Most new businesses take a huge risk when they start out with untested concepts and practices. With franchises, guesswork is reduced to a minimum, and the chance of lasting success and wealth creation is significantly increased.”

Franchises come with their own marketing, customer loyalty and even employee-training systems already in place. New business owners can save large amounts of money when they franchise rather than create new, independent businesses.

4. Real estate investing adds variety

Real estate investment functions differently, and because of this, some investors feel cautious about entering the market. But the advantage of real estate is that there are a number of ways to benefit from it, as it can create wealth through rental income, tax benefits, equity for other investments or an immediate profit from the reselling of property. The inherent diversity in real estate investments makes them a smart bet.

5. Keep flashy investments to a minimum

Every so often, an industry comes along that seems like an easy path toward getting rich quick, but it’s important not to let this temptation take hold. If anything, put a portion of money toward those flashy investments, but keep one hand active in other industries.

An example of when too many investors put all their money into a rising trend was during the dot-com bubble burst circa the year 2000. The internet seemed like a dream, and many investors failed to maintain smart strategies, subsequently squandering money when a vast swath of these companies turned out to be overvalued and their stocks crashed.

6. Don’t make investment decisions on autopilot

Just because you think you’ve created a beautifully diverse portfolio doesn’t mean you can let your investments run on their own. It’s imperative to stay informed about each market that you’re operating in. The more involved you are, the easier it will be to notice warning signs. You’ll also be able to tell when you need to pull out of an investment or patiently wait out a tough stretch. People rarely make money by accident. Don’t let your investments run on autopilot.

6 Savvy Ways to Diversify Your Investment Portfolio [Entrepreneur]

2020 is proving to be the year of the stock market. In an unprecedented shift, retail traders are pouring into stocks, hoping to build lucrative portfolios. From IPOs to blue-chip stocks, interest in equities is surging. Volatility is driving this growth, fueled in large part by tremendous market enthusiasm. Despite bullish sentiment, caution remains the order of the day. Savvy traders and investors understand the inherent risks of stocks. 

Two prominent schools of thought have emerged from the current predicament. There are those who believe that diversifying a financial portfolio with a mix of slow-growth, steady-yield stocks and high-growth, high-yield stocks are best. The opposing school of thought has opted for a portfolio comprised of moderate-growth stocks with hedge investments to guard against a downturn. In truth, there are a multitude of investment strategies that can be employed to deliver optimal results.

It’s really important to take a deep breath before you begin trading stocks. With your curiosity piqued, you will want to fill your head with the right information from the get go. Pick a reputable trading platform like StocksToTrade (Read this Review to learn what the platform has to offer) that has been tried and tested to perform under all market conditions. High-frequency, high-volume trading platforms are best since they deliver on expectations with real-time executions of trades (buy/sell orders), real-time market updates, and real-time pricing.

Making Sense of the Stock Markets Takes a Lot of Work 

This instructive guide is certainly not a cure-all to the maladies of the stock market; it is a solid foundation upon which to build your financial portfolio. Given the inherent complexities of trading and investing, it helps to begin on a solid footing. The trading platform and the broker serve as your go-to points for successfully navigating your way through tens of thousands of financial instruments. Many folks have avoided the stock market, for fear of dramatic losses. With the right broker, and a powerful trading platform, this needn’t be the case. 

Several misconceptions abound in the stock markets, notably:

• You need to be an expert trader or investor to succeed

• You cannot manage your own trades without an expert helping you

• You need big money and a thick skin to profit off the stock markets

• You will lose more money than you will make in the stock market over the long-term

• You should always entrust your investments to financial brokers and financial planners

Fortunately, we now know that anyone with the determination to succeed, the will to learn, and the fortitude to stay the course can profit off the financial markets. Stocks trading is inherently risky. It is this very volatility that drives profitability in the markets. The first order of business is to pick a sector of the market that interests you. There are 11 market sectors. These include utilities, real estate, materials, industrials, IT, healthcare, energy, financials, consumer discretionary, consumer staples, and communication services. Many investors stick with what they know, and gradually branch out into other sectors.

What Are Some of the Pitfalls You May Encounter When Trading Stocks?

Insufficient knowledge. Before you get started, read up as much as you can. Top-tier trading platforms like STT offer a synergistic approach to stocks trading. You can view detailed charts and graphs, with technical analysis in play. Stochastic indicators, moving averages, Bollinger Bands, 52-week high/low pricing, SEC reports, volume trading, valuations, and scores of other elements are readily available. This makes it really exciting to learn how to trade stocks online. The inclusion of a demo-trading account for 14 days at a price of just $7 is an added bonus. Be advised that a trading platform and a broker are different. A trading platform permits you to manage all trading activity using the platform as the go-between. A broker is a sales representative who negotiates trades for you.

A rush of blood to the head. Many novices find that emotions govern their trading activity. As a rule, you should always take emotion out of the equation. There is no benefit to buying and selling on tilt – it’s a recipe for disaster. Rather accept that trades can go either way, but that your determination to conduct the necessary research, use technical and fundamental analysis, and powerful trading tools such as Oracle can sway the needle in your favor. Too many traders and investors allow market momentum to govern their decision-making processes. When markets are selling off furiously, the herd falls all over itself trying to offload stocks. This is the wrong approach. Investors are in it for the long haul. When markets start tanking, that’s when buying opportunities abound. 

Knowing when to get in and when to get out. This is an incredibly tough skill to master. There is no panacea to timing the market. It certainly helps to set stop losses and take profit orders, to guard against a market correction, or a sudden bear market. Fear and greed keep people invested for longer than they ought to be. On the upside, investors may believe that they can maximize profits by staying invested in a market that is turning south. On the downside, fear may cause indecisiveness and lead to accelerated losses. 

Rather than buying or selling big chunks of your portfolio during volatile trading sessions, mix up the financial instruments in your portfolio. For example, it’s perfectly okay to hold a chunk of Apple stocks and a chunk of gold stocks at the same time. Apple for example, will help to grow your portfolio during a booming market and gold will stabilize the portfolio in the event of a downturn. There are many useful tips, tricks, and strategies that can be employed when trading stocks online. Never invest too much of your portfolio in a handful of stocks – that’s akin to putting all your eggs in one basket!

Besides getting customers, the biggest concern for startup owners is often financing. New businesses are strapped for cash and often don’t have the credit or track record needed to be interesting to financiers. They are also those who are the most likely to suffer from cash flow issues early on. However, there are some realistic funding options that most startup owners should consider. Here are some of the best funding options for fledgling startups.

Non-Bank Lenders

Non-bank lenders are often one of the best and only options for a new business to get financing. What differentiates these lenders is that they will usually be ready to look beyond your business’s credit to award loans. Services like AdvancePoint Capital, for instance, prefer to take a more holistic view of your business and its health. They might be more important to your cash reserves, or your bank statements, for instance. These are a good option if you don’t have credit and want to start building it.

Giving Away Equity

This is also an option that you could consider. Giving away part of the ownership in your company can not only get you some financing but some expertise as well. As a matter of fact, you ideally want to give equity to someone who’s going to be a strategic asset to your company as well.

Bootstrapping

Bootstrapping is about using the assets that you already have on hand to finance your startup. This could be anything from retirement accounts to home equity, or savings. You might also use low-interest credit cards. The good thing about this is that using a low-interest card could allow you to improve your credit and make financing easier for you later down the road.

If you’re going to go down that route, first make sure that you have the credit to qualify. Then, find cards with benefits for your business, like cash back or travel rewards if you have to travel a lot.

Grants and Contests

These are two of the most untapped sources of capital for small businesses, and it’s a shame. There are tons of government grants that you could qualify for if you simply took the time to look. For instance, some might offer money to businesses run by members of certain groups, like veterans for instance. Some will be awarded to people coming from impoverished neighborhoods, women, or from different ethnic groups.

You also have contests that are often geared towards fostering entrepreneurship. While you may never be able to get on “Shark Tank”, there are more and more municipalities that are holding their very own versions to help local business owners. You could check for competitions in your area as these will usually be much less competitive and give you a chance to connect with financiers even if you don’t end up winning. 

Conclusion

All of these options should be considered if you’re a startup owner looking for financing. Keeping your options open will give you more chances of getting the financing you so desperately need.

Switzerland continues to expand its position as a crypto and fintech location. New legal changes are expected to pave the way for the development of blockchain and distributed ledger technology (DLT).

More legal security, fewer obstacles for blockchain applications and the minimization of abuse – these are the cornerstones of the new blockchain laws in Switzerland. Already in June 2020, the National Council had approved amendments to the law, which should improve the framework conditions for the blockchain industry.

Now the Swiss parliament announced on September 10th, 2020, that the Council of States (the second chamber of the Swiss Federal Assembly in addition to the National Council) has also approved the bill. With this, the Alpine state once again proves its innovation-friendly attitude and its potential as a fintech and crypto location. Cryptocurrencies are already accepted as means of payment in many places in Switzerland.

If you want to read more about the new blockchain law Switzerland has and to find why Switzerland is one of the most crypto-friendly countries, download for free our companion app. The Born2Invest mobile app brings you the most important financial headlines in the world, for you to stay informed.

Fewer hurdles means  more innovation!

For example, it should be easier for companies that only offer financial services to institutional or professional customers. In future, they will not have to join an ombudsman’s office. In order to limit the risk of abuse, a new category of authorization is to be created for the commercial operation of DLT infrastructure providers. Furthermore, the separation of crypto-based assets from the bankruptcy estate will be clarified by law.

Switzerland has always been one of the most crypto-friendly countries. Especially in the canton of Zug a flourishing crypto scene has established itself. Numerous companies, associations and organizations around Bitcoin and Blockchain have settled in Zug, including the Crypto Valley Association. In future, citizens in Zug will even be able to pay their taxes in Bitcoin (BTC) and Ethereum (ETH).

Switzerland strengthens its position as a crypto friendly country

With the new framework, Switzerland intends to further strengthen its position as a crypto-nation. Among other things, startups should benefit from the changes in the law. Especially in the current economic crisis, increased legal security is important here, as was already stated in June when the National Council discussed the changes.

The coronavirus has made the situation even worse for many companies. According to a survey by the Swiss Blockchain Federation, almost 80 percent of the startups in the Swiss crypto industry expect to go bankrupt.

Last but not least, the removal of hurdles for blockchain applications and higher legal security should also attract foreign investors and companies to Switzerland.

Since last year, through a collaboration with the European payment and transaction service provider Wordline, the crypto broker Bitcoin Suisse started to increase the acceptance of cryptocurrencies in Switzerland. The companies have entered into a partnership to provide crypto payment services for merchants in Switzerland, as Switzerland Global Enterprise reported on November 11th, 2019.

Switzerland strengthens its position as a crypto friendly country [Born2Invest]