Here in Australia, it looks like we’ve suffered another loss in the war to keep cash alive. Two of our biggest cash handling companies (they deliver cash to banks, clubs, shops etc) have merged in a move that I while I can see as logical, really drives another nail in the coffin of freely available cash. Let’s face it there is a shrinking demand for cash, but even with the merger being approved it seems one of the companies “Armaguard” is looking for a $26 million dollar government funded bail out just to keep operating. ACCC article on Armaguard / Proseguer merger
I don’t particularly think it’s the company’s fault, as this kind of service requires 2 x armed guards with guns and an armoured van to deliver the cash to each drop. Obviously this is expensive. I’ve heard up to $5000 a drop (I don’t have anyway to confirm or deny this) so yeah I can see the demand for this stuff dropping especially with smaller to medium sized business or even smaller banks. But the more alarming problem is with this there were only 2 companies in my city (a city of almost half a million people) that delivered cash. They’ve both merged leaving one company that is facing severe financial problems.
What happens if these guys go broke? That will severeley impact the availability of cash in this town. Sucks but true.
If it’s happening here in Australia, you can bet your house it will also be happening in other places around the world as well.
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