Money remains on the move
Armaguard bailout ensures cash movement between banks, supermarkets, and ATMs.
An agreement sealed this week for Armaguard to continue moving money around the country is good news for the economy – and for National Seniors Australia’s Keep Cash campaign.
Armaguard has reportedly accepted a bail-out offer worth $50 million from its eight biggest customers, including major banks and supermarkets.
The money will allow it to continue operating for the 12 months beginning 1 July.
Part of the Linfox transport group, Armaguard moves currency between businesses, including the big retailers, and the banks. It also operates a chain of automatic teller machines under the atmx brand.
Despite controlling 90% of cash movement around Australia since its merger last year with its main competitor Prosegur, Armguard has been struggling due to the declining use of cash and, therefore, demand for its services.
Cash purchases in Australia have fallen from more than 60% of transactions in 2010 to 13% in 2022, and from 2018 to 2022, the value of transactions using digital wallets rather than cash increased from $750 million to $93 billion.
Under the deal, Commonwealth Bank, ANZ, Westpac, NAB, Coles, Woolworths, Bunnings, and Australia Post will make monthly payments in return for Armaguard meeting efficiency and restructuring requirements.
An independent accountant will ensure Armaguard meets its targets.
The news will be welcomed by the thousands of Australians who have expressed their wish to continue using banknotes and coins in the face of a relentless move towards a “cashless economy”.
According to a Reserve Bank survey, one in four Australians say they would experience genuine hardship or major inconvenience if they could not access cash.
Many older Australians have expressed a preference for cash to conduct certain transactions, as have people in regional and remote areas where internet services can be patchy or non-existent.
National Seniors Australia has been at the forefront of the movement to give people a choice in the way they make payments through the Keep Cash campaign.
The campaign includes the distribution of “We Accept Cash” stickers to retailers around the country, and “Keep Cash” bumper stickers.
NSA chief executive Chris Grice welcomed the Armaguard deal, saying it was “critical” to the economy.
“Without it, there is no other way cash can be moved around the country,” he said.
Australian Banking Association CEO Anna Bligh said the agreement "will keep cash moving around the country and ensure it remains available to Australians wherever they live”.
“The 12 months of financial support also gives Armaguard the necessary time to restructure the business and realise the benefits from their merger with Prosegur.”
TWU National Assistant Secretary Emily McMillan called the deal “a welcome relief to our members who have faced months of uncertainty and troubling headlines about the future of their employer”.
Related reading: AFR, ABC, News.com.au
