The ACCC has approved collaboration to safeguard Australia's cash-in-transit services.

The Australian Competition and Consumer Commission (ACCC) has granted authorisation for collaboration among the Australian Banking Association (ABA), its member banks, Australia Post, supermarkets, and other industry participants to maintain the continuity of the vital services. 

Cash-in-transit services, which involve the transportation, management, and processing of cash for banks, retailers, and ATM operators, play a critical role in the financial infrastructure of Australia, particularly in remote and regional areas. 

Following a recent merger that left Armaguard as the leading provider of these services in the country, the ACCC has stepped in to allow industry participants to engage in discussions and planning around potential service interruptions.

Additionally, the ACCC granted interim authorisation for ABA members, banks, and retailers to provide financial support to Armaguard. 

This authorisation allows these entities to share information, discuss operational sustainability, and develop efficiency measures, including a potential independent pricing mechanism. 

However, implementation of such agreements is not permitted until further authorisation is granted.

A key focus of these decisions is the protection of access to cash in rural areas, where physical bank branches are scarce and alternative cash points, such as those offered by Australia Post or local retailers, are often the only options for consumers. 

The ACCC has attached conditions to ensure transparency in these discussions and requires regular reporting from the ABA.

The ACCC’s authorisation framework, under the Competition and Consumer Act 2010, provides legal protection for such collaborative actions that might otherwise breach competition laws. 

These authorisations are granted when the public benefit outweighs any potential negative effects on competition. 

“It is important that in the event of any interruption to cash-in-transit services there are safeguards and measures in place to protect businesses and consumers,” ACCC Deputy Chair Mick Keogh said. 

He says the ACCC will assess compliance with these interim conditions when determining the overall public interest in its final decision.