2 in 5 transactions are contactless

Over the past decade or so, tech has revolutionised the way we spend, save and invest. It is now estimated that 2 in 5 transactions are contactless; a trend so widespread that even the UK’s largest retailers are reconsidering their approach to transactions.

Sainsbury’s have just announced plans to trial till-free stores, beginning with the Holborn Circus branch of the store in London, where it is claimed that 82% of transactions are cashless. This is yet another significant vote of confidence for online technology, showing that the general public are not only comfortable with computer-based money management, but often prefer it to the more traditional methods.

Customers will be able to scan the goods as they go via a SmartShop scan, pay and go app which can be downloaded on their smartphone. Afterwards they can scan a QR code which acts as a receipt for the purchase. Whilst many of the leading supermarkets have trialed apps for customers to pay for goods, Sainsbury’s are the first to try going till-free.

Customers are preferring the computer screen to the shopkeeper’s hatch

It is old news that customers have embraced online shopping but with companies making it easier and easier to pay for things online, customers are preferring the computer screen to the shopkeeper’s hatch.

However, it is important for businesses to remember that consumers will embrace technology at a different pace, and while these advancements make life easier for the majority of us, they are too much, too soon for others. Sometimes it’s easy to forget that had you presented this idea of ‘scan and go’ even just a decade ago you would’ve raised many eyebrows.

Even though we’re a FinTech platform, Kuflink have a committed customer services team ready to assist by phone or email and are always ready to welcome customers to our Kent offices.

We have, and always will, strive to be at the forefront of the technology revolution in order to reflect how comfortable customers are managing their money online.

You’d be forgiven for thinking that tax years are all about business accounting, P60s and tax returns, but in reality they often mark the start of some important changes for our day to day finances.

Here’s your quick guide to what’s changed this financial year:

Your ISA allowance is renewed*

For the year ahead, you have a brand new £20,000 allowance to use across the ISA family and any interest you earn will be tax-free! Many of us have held or know about Cash ISAs, but there are actually a whole range of different ISAs that could pay out much more interest than a typical Cash ISA –check out the Kuflink Innovative Finance ISA, for example.

Your tax-free personal allowance rises to £12,500*

Basic rate taxpayers are now allowed to earn £12,500 a year before having to pay any income tax, up from £11,850 last year.

The good news continues for higher rate taxpayers, for whom the threshold has increased from £46,351 to £50,000.

Your automatic workplace pension contributions increase

If you’re part of the workplace pension scheme, you can now expect to contribute 5% of your salary each month. This may vary in practice as technically the minimum contribution is now 8%, with a minimum 3% coming from your employer.

Although this increase may mean a little extra squeeze on your income, it’s always a great idea to make sure you save as much towards retirement as you can. You may even wish to consider additional investments to make sure your golden years really are golden!

2.1 million people expected to benefit from wage rises

From April onwards, the national living wage will be increased to £8.21 per hour with the national minimum wage for those aged 24 and under also rising.

*Capital is at risk. Your tax treatment will be dependent on your personal circumstances and subject to HMRC requirements.

No, it wasn’t his theory of relativity or even his world-famous E=mc², it was compound interest!

It goes without saying that fact this can come in very handy for pub quizzes, but on a more serious note – it might just change the way you manage your finances forever.

Einstein was totally right.

So, you’ve heard the term ‘compound interest’ before, but just to re-cap: it means re-investing any interest you’ve earned alongside the original sum. In other words, you’re earning interest on top of your interest.

The concept may well be nothing new, but did you know that compound interest alone could add thousands to the value of your investment?

For example, if you invested £10,000 at a rate of 7.2% pa for ten years, you’d have £17,200 at the end of the term.

However, if you compounded that interest on an annual basis over the same term, you’d have £20,042.31.

That’s a huge £2,842.31 extra in your pocket just for making one simple adjustment to the way you invest… and it won’t cost you a penny more!

So next time you receive some interest back from your investment, make sure you remember Einstein’s eighth wonder and watch your returns add up faster than ever.