Major banks and major retailers have reached an agreement with Armaguard to extend their financial contributions to support the dominant cash-in-transit business for a further six months.
This will see Armaguard “receive an extension of $25.5 million from July to December. This is in addition to the approximately $50 million already provided over the last twelve months to support cash distribution across the country” the Australian Banking Association said yesterday.
“This funding extension will allow work to continue on the development of an independent pricing mechanism to support a sustainable Cash-in-Transit business in the longer term.”
The ABA and retailers have selected Deloitte to develop this pricing mechanism.
“All parties remain committed to working to achieve a sustainable and more efficient Cash-in-Transit business into the future” the ABA said, though there is (and hasn’t been) any corresponding financial support for Armaguard’s competitors.
The funding parties include ANZ, Australia Post, Coles, Commonwealth Bank, National Australia Bank, Wesfarmers, Westpac and Woolworths Group.