Australia’s competition regulator has moved to protect access to cash across the country, proposing a new authorisation that would allow banking institutions and industry players to coordinate efforts to ensure the physical currency remains available—despite the rapid shift toward digital payments.
The Australian Competition and Consumer Commission (ACCC) announced Friday that it plans to allow the Australian Banking Association (ABA), along with other key organisations, to develop solutions aimed at maintaining cash services nationwide. The proposal comes amid mounting concerns that Australia’s largest cash distributor, Armaguard, may struggle to remain operational without structural support.
Major Banks Step In To Protect Cash Infrastructure
The ACCC‘s proposal follows a period of turbulence in the cash-in-transit sector. Armaguard, which services a wide range of clients including retailers, ATMs, banks, and hospitality venues, has faced increasing operational pressure as Australians move further toward digital and contactless payments.
In 2023, the company received a $50 million bailout from the nation’s four largest banks—ANZ, Commonwealth Bank, Westpac, and NAB—along with key commercial partners like Wesfarmers, Woolworths, Coles, and Australia Post.
This lifeline was intended to buy time while a new pricing model could be agreed upon. That model, developed by Deloitte Access Economics, was finalized earlier this month and is expected to provide more stable footing for Armaguard’s operations moving forward.
While the ACCC‘s current proposal is unrelated to that pricing structure, it complements it by encouraging long-term industry coordination on physical cash distribution.
ACCC deputy chair Mick Keogh emphasized that continued access to physical money remains essential.
“Public access to physical currency is incredibly important, especially for consumers who are reliant on cash payments including those in regional and remote areas,” Keogh said in a public statement.
This perspective reflects ongoing concerns that entire communities—particularly those without reliable internet or mobile access—could be left behind if the shift away from cash becomes too abrupt.
Digital Shift Raises Concerns For Vulnerable Communities
Although digital payments are now the dominant method for consumer transactions in Australia, with cash use dropping from 70% in 2007 to just 13% in 2022, the Reserve Bank of Australia (RBA) and other authorities have been vocal about maintaining payment inclusivity.
RBA Governor Michele Bullock noted during the Future Sydney conference hosted by The Daily Telegraph that approximately 1.5 million Australians still rely on cash for daily transactions. This includes older adults and vulnerable populations who may not have access to smartphones, bank accounts, or stable connectivity. “Cash continues to be essential,” Bullock remarked,
reiterating the central bank’s support for preserving access to physical currency. She added that the availability of cash helps support an inclusive financial system, and that Australia must avoid creating a two-tiered economy where digital payment users thrive while others struggle to keep up.
The issue is not merely about convenience but about financial equity. Many Australians, particularly those in remote and Indigenous communities, operate largely outside the digital financial system. For these groups, even minor disruptions in cash availability—like a local ATM being removed or a bank branch closing—can result in significant hardship.
ACCC Proposal Signals Broader Commitment To Cash Resilience
The ACCC’s proposed authorisation would allow the ABA and other key stakeholders to discuss and implement plans that protect access to cash without breaching competition laws. Normally, such coordination between competitors would be restricted, but the regulator argues that the public benefit outweighs any potential risks.
The move also sends a broader signal: while Australia is embracing digital payments at an impressive pace, regulatory bodies are not prepared to leave cash-dependent Australians behind. This approach reflects a more nuanced understanding of the national payments landscape—one that takes into account not just efficiency, but resilience and accessibility.
Submissions in response to the ACCC’s proposal are now open, inviting feedback from the public and industry before any final authorisation is granted. Though the ACCC has not set a specific timeline, the outcome is expected to influence how cash services are maintained for years to come.
The long-term trajectory may be toward digital, but for now, physical currency remains a vital part of Australia’s financial ecosystem—especially for those who need it most.
