The Australian Competition and Consumer Commission (ACCC) has signalled support for ongoing collaboration in the banking sector to safeguard Australians’ access to cash, while also approving a major payment services acquisition.

In a draft determination, the ACCC proposed authorising the Australian Banking Association (ABA) and other industry participants to develop strategies ensuring the continued distribution of cash nationwide.

This includes measures to maintain cash-in-transit services should Armaguard, Australia’s primary cash distributor, experience disruption. Any further measures would require separate authorisation.

Cash-in-transit services underpin Australia’s cash distribution system, providing transportation, processing, and storage for banks, retailers and hospitality venues, as well as ATM refilling and cash management services.

“Public access to physical currency is incredibly important, especially for consumers who are reliant on cash payments including those in regional and remote areas,” said ACCC Deputy Chair Mick Keogh.

The draft authorisation includes conditions requiring initiatives to protect cash access in remote regions, building on interim authorisations in place since October 2024. The ACCC is now seeking public submissions on the proposal.

Separately, the ACCC announced it will not oppose Cuscal Limited’s proposed acquisition of payment facilitation provider Indue Limited, after finding the deal is unlikely to substantially lessen competition.

The regulator’s review focused on the overlap between Cuscal and Indue in supplying payment facilitation services to small banks, credit unions and fintech companies, which enable organisations to offer solutions such as eftpos and debit card processing.

“While Cuscal and Indue are two of the larger payment facilitation service providers, there remains a range of other suppliers available to customers across the various payment schemes,” said ACCC Commissioner Dr Philip Williams.

The ACCC said consolidation among smaller banks has reduced competitive pressures, but also highlighted that digitisation of payments lowers switching costs and encourages competition.

Many of the customers most impacted by the acquisition, including small and mutual banks, supported the transaction, citing expected efficiencies and ongoing investment in products and innovation.