In an era where digital transactions are becoming the norm, it's easy to forget the importance of cold, hard cash.

However, for many Australians, cash remains an essential part of daily life.

That's why news of a $50 million deal to save a key player in the cash distribution network is more than just a business headline.

The $50 million deal to save Armaguard—to be formally announced on Monday—is a collaborative effort between Australia's big four banks—ANZ, CBA, NAB, and Westpac.

Major retailers and services, including Wesfarmers, Coles, Woolworths, and Australia Post, also contributed to the deal.

This coalition recognised the importance of maintaining a robust cash distribution system.

A huge chunk of Australians still prefer using cash payments in their daily transactions. Image Credit: Shutterstock/Tatiana G

It also ensured Armaguard's services remain accessible for the coming year.

The deal also highlighted the importance of preserving a vital service, especially for Australians living in rural areas with limited digital services or residents who are uncomfortable with digital payment methods.

The hefty deal followed after Armaguard's parent company and logistics giant, Linfox, rejected an initial emergency funding of $26 million.

The Transport Workers' Union (TWU) also emphasised the importance of this deal.

According to TWU's National Assistant Secretary Emily McMillan, approximately 1,400 Armaguard workers were relieved of the news after facing months of uncertainty regarding their jobs.

McMillan also called on the coalition to pay as soon as possible to ensure smooth operations, as cash-in-transit jobs are high-risk professions.

'While this news brings optimism of job security for the next year, wealthy banks and retailers must ensure the long-term viability of cash-in-transit operations by stopping the squeeze on transport contracts for a service our community needs,' she said.

As we await further details on the deal, it's essential to recognise the role that we play in the economy.

Whether you withdraw cash from an ATM, pay for groceries at the local market, or simply keep a few notes for emergencies, you're contributing to the demand for cash services.

This news is a reassurance that cash will continue to be a viable payment option for the foreseeable future.

Key Takeaways

• Major banks and retailers teamed up to provide a $50 million bailout to secure Armaguard's services for the next 12 months.
• The deal came after Armaguard's parent company, Linfox, rejected a previous emergency funding offer and will now be presented to the competition regulator for approval.
• The bailout aimed to ensure that cash remains a viable payment option, particularly for regional communities and those reliant on cash transactions.
• The Transport Workers' Union (TWU) expressed relief for the job security this deal, which provides for approximately 1400 employees.

Do you still use cash regularly? What do you think about this new update? Share your thoughts and opinions with us in the comments below.

 

[pascoevale]

Yes to using cash as simply no fee involved as using a card every wher you use a card attracts extra fee which road up ,the banks and governments want cashless because they make more money out of you and it will only get worse, if cash is removed from use they will charge you more and more and you wont be able to use cash

 

[MaccaMan]

Not sure if those responsible for the New World Order have realised that cash must go on OR if it's just smokescreens and mirrors...a little something to placate the Freedom Fighters to make us think we are winning...
A girlfriend recently returned from Taiwan and said cash was being used widely - more than she had ever seen in the past. Barely anyone was using card. She also visited China where it was almost impossible to use cash - card everywhere!

 

[June E]

That only guarantees it for a year not a lot of hope for all those people whose jobs are on the line!

 

[GeraldineP]

Best news ever.
If they took cash away and the digital system broke down, what would happen then without cash!

 

[IAN3005]

Yes to using cash as simply no fee involved as using a card every wher you use a card attracts extra fee which road up ,the banks and governments want cashless because they make more money out of you and it will only get worse, if cash is removed from use they will charge you more and more and you wont be able to use cash

Don't forget that once they make everything 'CARD ONLY' they will be free to charge whatever they like in every transaction and we will have a say in the matter....

 

[Rob44]

So Armaguard has found a way to blackmail us via the banking industry? That bailout will come back to us in increased bank fees. Aren't there other Security companies able to replace Armaguard, or is this yet another instance of a corporate monopoly screwing us for a quick buck? Simple: nationalise Armaguard.

 

[IAN3005]

Up go the charges and fees.....prices too, someone needs to pay them, why to the public.

 

[Rob44]

Why can't we employ the Australian Army to replace Armaguard to carry cash? One presumes the army still uses roadworthy troop carriers and all our squaddies have been trained to react effectively should violence be directed towards them and their vehicles.

It would give them something productiveto do rather than square-bashing and being shouted at by Sergeant-majors..........

 

[freedy50]

In answer to the SDC question. I never use cash regularly.

I think I've got about $30 in my wallet which I've had for a few years and some loose cash at home, but it's much easier and quicker these days to use a debit card. And NOT every business charges a fee!

 

[Lynee1953]

I think it’s great, we definitely need to keep cash in our kivedt

 

[Rob44]

In answer to the SDC question. I never use cash regularly.

I think I've got about $30 in my wallet which I've had for a few years and some loose cash at home, but it's much easier and quicker these days to use a debit card. And NOT every business charges a fee!

And NOT every business charges a fee!

YET!

 

[Barbara V]

I suppose with me 50,50. Pay cash if $50 or under use card for bigger transactions. Exception if someone I employ e.g. plumber if they want cash in hand

 

[Barbara V]

I suppose with me 50,50. Pay cash if $50 or under use card for bigger transactions. Exception if someone I employ e.g. plumber if they want cash in hand

 

[Ebby]

I suppose with me 50,50. Pay cash if $50 or under use card for bigger transactions. Exception if someone I employ e.g. plumber if they want cash in hand

l agree we need cash for buses and to pay people that come to the house doing jobs but there is Bpay too which l use to pay my rates and electric bills.When my son shops for me we use visa

 

[Luckyus]

Why can't we employ the Australian Army to replace Armaguard to carry cash? One presumes the army still uses roadworthy troop carriers and all our squaddies have been trained to react effectively should violence be directed towards them and their vehicles.

It would give them something productiveto do rather than square-bashing and being shouted at by Sergeant-majors..........

Unfortunately that while good idea, it would require someone in the Government to make a definitive commitment. But that may impact their race to the bottom.

 

[Maggie 2]

Apart from online purchases and supermarket buys most of my spending is using cash. I can't see the point in using a card to pay for small purchases e.g. a cup of coffee and then being charged for the privilege. When my 'cash stack' dwindles I top it up by withdrawing money from the bank. How sad that children now and in the future might grow up without the joy of counting the coins in their money box, an exercise that teaches them how to save and hopefully spend wisely. The old adage to 'watch your pennies grow' has never been more important.

 

[Luckyus]

Apart from online purchases and supermarket buys most of my spending is using cash. I can't see the point in using a card to pay for small purchases e.g. a cup of coffee and then being charged for the privilege. When my 'cash stack' dwindles I top it up by withdrawing money from the bank. How sad that children now and in the future might grow up without the joy of counting the coins in their money box, an exercise that teaches them how to save and hopefully spend wisely. The old adage to 'watch your pennies grow' has never been more important.

A crying shame that, that adage doesn't seem to have been taught to todays pollies along with, cut your cloth according to your measure.

 

[IAN3005]

And NOT every business charges a fee!

YET!

Wait until they have a cashless society... I can see them salivating on the sidelines just waiting to up the charges on debit/credit cards on every transaction.
Then they can charge whatever they like and we don't have any say in the matter.
They can stop all payments (already done in China) to and from the accounts.
By hook or by crook they WILL CONTROL US.....

 

[IAN3005]

Apart from online purchases and supermarket buys most of my spending is using cash. I can't see the point in using a card to pay for small purchases e.g. a cup of coffee and then being charged for the privilege. When my 'cash stack' dwindles I top it up by withdrawing money from the bank. How sad that children now and in the future might grow up without the joy of counting the coins in their money box, an exercise that teaches them how to save and hopefully spend wisely. The old adage to 'watch your pennies grow' has never been more important.

See my response to Rob44