Cash transport crisis: What it means for you and your money 🚚💰
Why Australia’s cash supply is at risk and what’s being done to fix it.
For Australians who still prefer using cash, there’s an ongoing issue that could affect how easily you can access your money. The company that delivers cash to banks, ATMs, and shops – Armaguard – is struggling financially. Without it, businesses wouldn’t be able to deposit their takings, and cash withdrawals from ATMs and banks could be affected.
How did we get here?
Armaguard has been struggling for some time. In 2023, it merged with its only competitor, Prosegur, after both companies said they couldn’t survive on their own. The merger gave Armaguard control of over 90% of the cash transport market, but it still found itself in financial trouble.
Banks and major retailers offered Armaguard a $50 million emergency package last year, hoping it would use the time to restructure and cut costs. However, despite efforts to become more efficient, the company continues to lose money. The issue has now become more urgent, as its funding runs out in June, and there’s no long-term solution in place.
Why is this happening?
With more people using digital payments, fewer Australians are paying with cash. In 2007, about 70% of all transactions were made with cash. By 2022, that number had dropped to 13%, and experts predict it could fall to just 4% by 2030.
Because fewer people use cash, Armaguard is making less money, making it harder for the company to cover the costs of transporting money around the country.
What could happen next?
The Reserve Bank of Australia (RBA) is trying to find a solution before June, when Armaguard’s current funding runs out. Banks and businesses may agree to another short-term funding package, giving Armaguard more time to restructure its business and reduce costs. However, a long-term fix is still unclear.
If banks decide not to fund Armaguard, cash supply disruptions could begin, making it more difficult to withdraw cash from ATMs or over the counter at banks. Some businesses may also face delays when receiving cash deliveries.
What this means for cash users
- ATM access could be limited – If Armaguard shuts down, ATMs may run out of cash more often, and fewer ATMs may be available. This could make it harder to withdraw cash, especially in rural areas.
- Bank branches may have less cash – Without a reliable way to transport money, banks may reduce how much cash they keep on hand, meaning it could take longer to withdraw large amounts.
- Shops may struggle with change – If businesses have difficulty depositing cash or getting change, they may start limiting the use of cash payments.
Will cash disappear completely?
Not yet. The Australian government has announced that from 2026, businesses selling essential items – like groceries and fuel – must continue to accept cash. This means you will still be able to use cash at supermarkets, petrol stations, and other key locations.
What you can do
- Withdraw cash in advance – If you rely on cash, consider keeping a small emergency amount at home in case of ATM shortages.
- Use Bank cranches while you can – With cash deliveries uncertain, you may want to plan withdrawals in advance.
- Encourage local businesses to accept cash – Supporting cash-friendly businesses can help ensure that cash remains a viable payment option.
- Stay informed – Keep an eye on updates about cash availability and government regulations.
The cash transport crisis is an ongoing issue, but discussions are happening to find a solution. If you rely on cash, staying informed and planning ahead will help you avoid any disruptions. For now, cash is still here – but for how long, only time will tell.
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