Banks, retailers and other industry participants have been granted conditional authorisation by the Australian Competition and Consumer Commission to collaborate on the continuity of cash-in-transit services in the country.

The authorisation allows the Australian Banking Association (ABA), major banks, major retailers and supermarkets, and Australia Post to provide financial support to Armaguard.

Armaguard handles about 90 per cent of cash movements in the country, which total about $6 billion a week.

The parties are also allowed to discuss, agree and implement operational sustainability and efficiency measures Armaguard’s cash-in-transit services.

In addition, they can develop, but not implement, an independent pricing mechanism in respect of their cash services agreements with Armaguard.

“We consider that the conduct would be likely to reduce the risk of disruption to Armaguard’s cash-in-transit services in the immediate future, while the increased sustainability of those services would support ongoing access to cash across Australia,” said ACCC deputy chair Mick Keogh.

Among the conditions, the ABA is required to make regular reports to the ACCC about the progress and to ensure that an independent expert will conduct consultation with stakeholders regarding the development of an independent pricing mechanism.

Cash-in-transit services involve providing cash transport, management, and processing services. These services are provided to banks, retailers, and independent ATM operators.

Last May, the ACCC authorised – with conditions – that retailers, the ABA, the Customer Owned Banking Association, banks and other industry participants can continue developing responses to support the distribution of cash.

The move came after Armaguard expressed its concerns about its operational future in the industry, given the declining use of cash.

Later in the year, the commission provided several interim authorisations with conditions for major banks and retailers to provide financial contributions to Armaguard.