Cash Logistics Market size is set to grow by USD 24 billion from 2024-2028, Growing preference for outsourcing cash management services by financial institutions boost the market, Technavio

NEW YORK, July 10, 2024 /PRNewswire/ -- The global cash logistics market size is estimated to grow by USD 24 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 10.86%  during the forecast period. Technological advancements in cash logistics are enhancing efficiency and security in the industry. Innovations include advanced ATM technologies for secure cash dispensing, smart safes with real-time monitoring capabilities, and GPS-enabled tracking systems for precise cash transportation. These advancements support the growing preference for outsourced cash management services by financial institutions, despite challenges posed by increasing plastic money and online transactions. Key players such as AGS Transact Technologies Ltd., Loomis AB, and Prosegur Compania de Seguridad SA are at the forefront, leveraging technology to meet evolving market demands and ensure robust cash security solutions.

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Market Driver

The demand for automatic cash recycling in ATMs, automated teller safes, and self-service cash recycling machines is growing as financial institutions seek to enhance revenue growth, improve customer service, and optimize costs. In traditional banking, tellers manage cash levels, requiring labor costs for tellers and supervisors, as well as opportunity costs for keeping large cash reserves in ATMs. Cash recycling systems, which function like a vault between two tellers but with advanced cash management technology, help financial institutions streamline operations at a lower cost. This system eliminates the need for tellers and vaults to manage cash balances, increasing efficiency by approximately 90% and reducing expenses. With the COVID-19 pandemic, cash recycling has become even more crucial for minimizing cash touchpoints. As a result, the global ATM market and cash logistics market are experiencing significant growth due to the increasing demand for cash recycling systems. 

Cash logistics is a crucial aspect of the banking sector, involving the transportation, handling, and management of physical cash. Key trends include cash-in-transit services, ATM replenishment, and cash center operations. Cash flows between bank branches, ATMs, and points require secure and efficient movement. Digital money is on the rise, but currency circulation continues to demand safe and reliable cash logistics. Safety is paramount, with safety vaults, digital electronic vaults, and motorized shooting bolts used to secure valuable assets. However, hazards like cash logistics agencies robberies, motorized shooting bolt thefts, and cash-in-transit vehicle robberies pose risks. Companies like CompuSafe use advanced technology to mitigate these hazards. Cash logistics companies handle cash payments and cash movement for various economies, including shops, wholesalers, raw materials suppliers, and exchange businesses. Location, cash processing, and currency management are essential components of cash logistics. Cash logistics services ensure the smooth circulation of cash, enabling customers to make payments and access their funds at ATMs. 

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Market Challenges

•         The use of payment methods other than cash, such as credit cards, debit cards, stored-value cards, online purchases, and mobile payments, is increasing. These options enable convenient financial transactions without the need to carry cash. Plastic money offers benefits like anywhere, anytime banking. This trend could lead to less cash usage at marketplaces and a decrease in the need for physical retail stores and bank branches. Banks provide smart cards and net banking options to reduce customers' cash dependency. The e-commerce industry's growth is due to the rise in online transactions. In supermarkets and hypermarkets, smart card reader machines offer plastic money payment options. The availability and use of electronic payment infrastructure and methods are growing, posing a significant challenge to the cash logistics market's expansion in the coming years.

•         Cash logistics is a critical business sector involving the handling, transportation, and processing of physical cash. However, it comes with its own set of challenges. Cash-in-transit vehicle robberies remain a significant hazard, with motorized shooting bolts and CompuSafe being common tools used by robbers. Cash logistics agencies must ensure the safety of precious assets during cash movement, mitigating public exposure. Location is crucial for cash processing and currency management, with cashiers and ATMs playing key roles in customer satisfaction. Economies rely heavily on cash payments, especially in shops, wholesalers, and raw materials suppliers. Cash logistics companies face challenges in handling and transporting cash in a secure manner, especially in high-risk regions. Technological improvements, such as electronic payment methods and digital payment solutions, are increasingly popular, but physical cash remains a significant part of the economy. Financial service providers must adapt to meet customer demands while ensuring security. Internet banking and smartphones have revolutionized cash transactions, but cash logistics companies must stay ahead of the curve to maintain client satisfaction.

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Segment Overview 

This cash logistics market report extensively covers market segmentation by  

1. End-user 
• 1.1 Financial institutions
• 1.2 Retailers
• 1.3 Government agencies
• 1.4 Others
2. Service 
• 2.1 Cash-in-transit
• 2.2 Cash management
• 2.3 ATM service
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Financial institutions-  The financial institutions segment is a significant contributor to the global cash logistics market. This segment includes banks, credit unions, and other financial service providers that handle substantial cash transactions. These institutions require secure and dependable transportation of cash to and from their branches, ATMs, and other locations. Cash logistics companies cater to these needs, offering services such as cash pickup, transportation, counting, sorting, and delivery. Banks, with their vast network of ATMs and branches, are the primary customers of cash logistics companies. For instance, Bank of America, with over 16,000 ATMs in the US, relies on cash logistics providers for cash refilling. Credit unions, with their growing number of branches, also require secure transportation of cash between locations. For example, Navy Federal Credit Union, the largest credit union in the US, has over 340 branches. Other financial services providers, including check-cashing businesses and payday lenders, also need secure cash transportation due to their high cash volumes. Consequently, the financial institutions segment will continue to drive the growth of the global cash logistics market during the forecast period.

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Research Analysis

Cash logistics refers to the secure transportation and management of cash and valuable assets. It involves various services such as Cash-in-Transit, ATM replenishment, cash centers, and bank branch cash handling. Cash flows through cash logistics networks, moving from cash centers and bank branches to ATMs and other points of sale. Valuable transport plays a crucial role in cash logistics, ensuring the safety of cash during transit using safety vaults and trained personnel. Currency circulation is a significant aspect of cash logistics, with cash demand constantly changing. Digital money and ATMs have transformed the landscape, requiring efficient cash processing and currency management. Cash logistics also involves handling hazards such as public exposure and the risk of theft or robbery. Cash processing services, currency management, and cashiers play essential roles in ensuring the smooth functioning of cash logistics systems.

Cash logistics refers to the secure transportation and management of physical cash and valuable assets. This essential service includes Cash-in-Transit (CIT), cash centers, ATM replenishment services, and bank branch cash handling. Cash flows through various channels such as ATMs, bank branches, and retail outlets, requiring constant circulation and replenishment. Safety vaults and digital electronic vaults ensure the security of cash and precious assets. Cash logistics agencies face hazards like cash robberies, which have led to the use of motorized shooting bolts and advanced security measures. Companies like CompuSafe provide advanced cash processing and currency management solutions. The banking sector continues to evolve, with technological improvements like motorized shooting bolts, digital money, and electronic payment methods gaining popularity among internet users and financial service providers. Cash movement involves handling and transportation, requiring careful planning and location-specific strategies. Cash logistics companies prioritize client satisfaction, ensuring secure and efficient cash processing and currency management for economies, shops, wholesalers, raw materials suppliers, and exchange services in various economic regions. Cash payment remains a significant part of the financial ecosystem, with cash logistics agencies playing a crucial role in its circulation and security.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Financial Institutions
• Retailers
• Government Agencies
• Others
• Service
• Cash-in-transit
• Cash Management
• ATM Service
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio