Australia’s biggest banks and retailers have agreed to extend a $25.5 million financial lifeline to Armaguard, the nation’s dominant cash-in-transit provider owned by billionaire Lindsay Fox.

The funding will keep Armaguard operational until the end of 2025, following a previous $50 million bailout last year.

The group backing Armaguard includes the Big Four banks – Commonwealth Bank, Westpac, NAB, ANZ – as well as retail giants Coles, Woolworths, Bunnings, Australia Post and Wesfarmers.

Multiple sources involved in negotiations confirmed the deal over the weekend, with an official announcement expected imminently.

Armaguard manages about 90% of Australia’s cash movement, handling an estimated $6 billion weekly. Despite this key role, the rise of digital payments has dramatically reduced cash usage, increasing operational costs and threatening the business’s viability.

Cash payments accounted for 62% of transactions in 2010 but fell to just 13% by 2022, with projections to drop further to 4% by 2030.

The Australian Banking Association (ABA) said the funding extension will support ongoing work to establish an independent pricing mechanism aimed at making cash transit sustainable over the long term.

Deloitte Access Economics has been engaged to develop this pricing framework, consulting with pubs, clubs and other cash-dependent businesses.

Armaguard has been streamlining operations, including optimising delivery routes, to cut costs.

The company’s future depends on reaching a viable pricing structure acceptable to its major customers, who rely on it for cash distribution to branches and stores nationwide.

This collaboration follows ACCC approval in 2023 for Armaguard’s acquisition of its main rival Prosegur.