Deloittes develops plan to fix Armaguard’s cash-in-transit pricing model and keep cash flowing around Australia

A major review has recommended a new pricing model to save Armaguard’s cash-in-transit services and keep money moving across Australia. Armaguard received a $50m bailout last year from Australia’s big four banks – ANZ, Commonwealth Bank, NAB and Westpac – and four of the largest retailers in Wesfarmers, Coles, Woolworths and Australia Post to help the cash transport distributor stay in business. Australia’s only cash-in-transit service struggled to stay afloat after consumers opted to use digital payments over cash seeing Armguard’s revenue decline. Deloitte Access Economics provided its final independent pricing mechanism report to Armaguard and Australia’s major banks and retailers.The model requires approval from the Australian Competition and Consumer Commission before it can be adopted. A Deloitte spokesman said it was an important milestone to keep cash available around Australia, even when people used less. “(It) would support the continued financial viability of cash distribution across Australia, especially in regional and remote areas,” the spokesman said. “All parties have worked together in good faith to achieve this milestone and will continue to work together to ensure the ongoing sustainability of cash-in-transit services.”