ACCC backs cash-in-transit collaboration among banks, retailers
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The news: The Australian Banking Association (ABA), its member banks, Australia Post, retailers, supermarkets and other industry participants will be able to collaborate on ensuring the continuity of cash-in-transit services, after the competition regulator authorised the conduct today.
The context: Today's authorisation comes just over a month after the Australian Competition and Consumer Commission (ACCC) flagged it planned to back the coordination among banks and retailers.
Under the authorisation, the ABA must provide regular reports to the ACCC about discussions and steps taken to engage in consultation with industry participants across Australia, with key considerations given to regional areas under the ACCC's decision.
Linfox Armaguard and Prosegur Australia gained merger authorisation in June 2023 to combine their cash distribution and management and other businesses in Australia, but Armaguard flagged it was struggling to deliver services at the same prices as cash services decline.
The ACCC granted interim authorisation in July for major banks ANZ, Commonwealth Bank, NAB and Westpac, as well as Australia Post, Coles, Wesfarmers and Woolworths to coordinate financial support for up to 12 months to cash-in-transit service Armaguard.
What they said: “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.
“Our authorisation today, allows the ABA, its member banks and other industry participants like Australia Post to make this happen”, Keogh said.
“... A key consideration in both of the ACCC’s decisions was the importance of facilitating continued access to cash in remote and regional areas where consumers are more likely to be high cash users. Remote and regional areas also have fewer bank branches and so, often, the only access is through non-bank organisations such as Australia Post, clubs and retailers”, Keogh added.
The source: ACCC media release
