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What Does The Collapse Of Armaguard Mean For Australia’s Cash Flow?

The nation’s number one cash-in-transit business is losing money as consumers opt for tap-and-go payments and big retailers like Coles lose their cash reserves.

Due to the rise in cashless transactions, the transportation of banknotes and coins around the country is becoming increasingly unprofitable.

Swinburne University’s Professor Steve Worthington said Australia is on its way to becoming a cashless society.

The Briefing investigates what the future of cash looks like in Australia:

“If [Armaguard] collapsed or went into liquidation, there’d be not much cash, if any, in ATM’s and merchants would be stuck with lots of cash,” Worthington said.

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Armaguard carries about 90 per cent of cash in transit markets but has struggled to stay afloat despite merging with rival money mover Prosegur last year.

The business has also rejected a lifeline deal worth $26 million.

“We rely a lot on IT systems and telecoms,” Worthington said,

“They sometimes break down and if they break down then the fallback position is used in cash, so cash can be very valuable”.

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