Australia Cash-in-Transit Market Report – Forecast, Outlook, Suppliers

Cash-in-Transit Service Australia Category Intelligence

Report Coverage

Cost Saving Practices in Cash Services
Competitive Intelligence
Price Benchmarking
Negotiation Strategy

Cash-in-Transit Service Australia Trends

Category Intelligence on Cash-in-Transit Service Australia covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Industry Outlook & Drivers

Regional Market Outlook on Cash-in-Transit Service

Supplier Maturity – The market is a duopoly, dominated by Armaguard and Prosegur, who offer a wide range of product portfolio, bundling CIT services with cash management and ATM maintenance services

Buyer Maturity – The maturity of buyers is also high, as they engage with suppliers on KPIs/SLA-based contracts, and focus on technologies to drive cost-savings

Market Dynamics and Trends

Consolidation of suppliers

A shift in consolidation of suppliers has been witnessed in the last few years in Australia. A major reason being the increase in pressure on cost of staff, fuel and other elements are not reducing for the suppliers, making the profitability low

Growth in cash management services

Cash management consists of verifying, reconciling, processing, forecasting, storing, and total management of customer cash and coin in a seamless and transparent manner for the customer
Processing and managing currency has grown tremendously with the service providers dedicating state-of-the art facilities for currency processing and management

Retail cash automation

Cash dispensers, smart-safes, and recyclers have been at the forefront when it comes to automating the cash handling process
By providing the capability to accept, authenticate, sort, count, and in some cases dispense cash, these devices automate the back-office cash handling and provide significant labor savings to the merchant or bank using them

Growth in electronic payments

The proliferation of payment options other than cash, including credit cards, debit cards, stored-value cards, mobile payments and on-line purchase activity, has resulted in a reduced volumes for the cash in transit companies

Growth in “Soft skin” CIT operations

Historically, the CIT work had been completed by armored trucks but increasingly soft skin operators have commenced completing larger amounts of work in the sector. “Soft skin” CIT operations have a single guard who does not wear a uniform, an unmarked, unarmored vehicle with limited security features

Industry Drivers and Constraints

Drivers

Integrated/Bundled solutions

The clients are leaning towards integrated solutions which can cover both cash management services and armored car services

Increase in ATMs

ATM management has been a major driver of armored car services and cash management
Installations of ATMs is forecasted to grow at a CAGR of 6.3% until 2019 in North America, which will continue to drive demand for armored car services

Increase in crime rate

Increase in crime rate has driven the outsourcing of cash handling to specialist service providers, thus reducing the risk for customers

Laws and regulations

Complying with laws and regulations related to Cash-In-Transit (CIT) has driven the outsourcing of these services to specialist service providers

Constraints

Rise in insurance premiums

Increasing crime and theft rates calls for rise in insurance premiums
Increase in pension liability

Pricing pressure

Significant competition and pricing pressures in most markets

Decreased use of cash

Decreased use of cash in developed markets
Closure of numerous local bank offices has reduced access to cash

Porter's Five Forces Analysis – Australia

Supplier Power

The cash-in-transit market in Australia is a duopoly and hence the supplier power is high
The CIT industry is both a labor intensive and capital intensive industry, where established players like Armaguard and Prosegur dominate the market due to their service capabilities

Barriers to New Entrants

High supplier consolidation becomes a threat for the prospective vendors in terms of creating a market space for themselves

Intensity of Rivalry

The rivalry among competitors is pretty low as there are only a handful of suppliers who can provide integrated cash management solutions and they have a reasonable market share for themselves

Threat of Substitutes

Large buyers can leverage volume of contract as a bargaining power, in an otherwise supplier dominated market
Large buyers make an attractive client for any supplier in terms of contract volume, thereby gain better negotiating power

Cash-in-Transit Service Australia

Top Suppliers

Linfox Armaguard
Prosegur

Cash-in-Transit Service Australia Market Intelligence

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Cash-in-Transit Service Australia Category Intelligence

Report Coverage

Cash-in-Transit Service Australia Trends

Want a more detailed personalised report?

Industry Outlook & Drivers

Regional Market Outlook on Cash-in-Transit Service

Industry Drivers and Constraints

Porter's Five Forces Analysis – Australia

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Offerings

Beroe

Others

Cash-in-Transit Service Australia Market Intelligence

Are you looking for answers on Cash-in-Transit Service Australia?

Are you looking for answers on Cash-in-Transit Service Australia?

Over 50,000+ users trust Beroe

Cash-in-Transit Service Australia Category Intelligence

Report Coverage

Cash-in-Transit Service Australia Trends

Want a more detailed personalised report?

Industry Outlook & Drivers

Regional Market Outlook on Cash-in-Transit Service

Industry Drivers and Constraints

Porter's Five Forces Analysis – Australia

Top Suppliers

Related Categories

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