The death of cash nearly became a reality this Easter long weekend as money transport firm Armaguard teetered on the edge of collapse. Australians are using less cash for everyday transactions, which means the delivery of money is not as profitable as it once was. Armaguard, a monopoly provider, rejected a $26 million lifeline after refusing to open its books. It says it’s working on its own financial solution and will continue operations for now. But the resulting turmoil has exposed the trouble Australia faces if physical money suddenly stops moving around the country and has heightened concerns that Australia is moving to a cashless society. In 2007, 69 per cent of Australians used cash to transact, but by 2022 this had fallen to just 13 per cent. As cash use declines, supermarket giant Coles is it's cutting customer cash withdrawals by half, from $400 to $200. The retailer was so worried that its money could be lost in vans transporting cash if Armaguard had fallen over that had said it would pause cash deliveries until April 5. But by Thursday afternoon, once Armaguard confirmed its survival, Coles also confirmed that cash deliveries would continue and customers would still be able to transact with banknotes and coins across its 840 stores over the Easter holidays. Reserve Bank Governor Michele Bullock has previously flagged a future where users may have to pay merchants to use cash.
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