In some other countries, the falls are less acute. ![]() Accenture expects this to fall to 11 per cent this year, and just 4 per cent by the end of the decade. This plunged to 22 per cent in 2020, then 18 per cent in 2021, as lockdowns forced a lot of spending online.īut after the retail sector opened up when the virus subsided, the decline has worsened, to 13 per cent last year. In 2019, before the pandemic, 27 per cent of all transactions in Australia were conducted with cash. So we are in a much worse financial position than we expected when we commenced the process.” The Australian cash industry has not rebounded after COVID as it has in other parts of the world. ![]() “As a result, people aren’t using as much cash as we thought they would. A number of factors have changed dramatically since then, including cash rate increases, inflation and cost of living pressures,” he said. “Two years ago, when we started this merger process, the economy was in a very different position. ![]() “This is not a short-term problem – this is a permanent problem,” Mr Cronin told The Australian Financial Review on Thursday.īoth companies had figured cash usage would at least partially rebound after lockdowns crippled in-store spending, but they now realise the sharp drop-off could be permanent, with cash usage projected to continue to slide as digital payments proliferate. A forecast rebound in cash transactions failed to materialise after the pandemic, compounding financial pressure on coins and notes distributor Armaguard, and underlining the need for an urgent industry fix to ensure Australians can access cash, CEO Mick Cronin said.Īrmaguard CEO Mick Cronin: “We are in a much worse financial position than we expected when we commenced the process.”Īfter the banks filed an urgent application with the competition regulator to allow them to enter crisis talks – including consideration of Armaguard’s surprise request for an additional $190 million capital injection over the next three years – Mr Cronin said the economics of the industry are more dire than it and rival Prosegur thought.
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