The battle for control of Australia’s automated teller market has intensified with Prosegur and Next Payments lodging a joint objection with IP Australia over a move by the Lindsay Fox-owned Armaguard to re-brand its national network.
Documents filed with IP Australia show that Prosegur, Next and another automated teller provider, the Banktech Group, are formally opposing the use of the term “atm” in Armaguard’s “atmx” network.
According to Armaguard, Banktech has since withdrawn its opposition, but Prosegur and Next are continuing to object to the brand on the grounds that it is too generic for IP Australia to grant trademark status.
If successful, the legal challenge could turn out to be costly for Armaguard because it has already completed the rebranding of many of the 2100 machines in its network.
Armaguard is currently rebranding a fleet of ATMs it acquired from ANZ and Commonwealth Bank last year and is looking to enter similar deals with NAB.
An Armaguard spokesperson last night confirmed the company would be defending its right to use the atmx trademark.
“Linfox Armaguard is aware that Prosegur and Next Payments have lodged an opposition to our atmx by Armaguard trademark application, however we have not been formally served the Statement of Opposition from IP Australia as yet,” the spokesperson said.
“It is also our understanding that Banktech have withdrawn from this opposition process.”
Armaguard is likely to defend its use of the brand on the grounds that other providers of automated tellers also include the term “atm” in their monikers.
“There are several other brands and trademarks that include the term ‘ATM’, and atmx by Armaguard does not encroach on any of these brands,” the spokesperson said.
“This opposition does not impact our ability to use the name ‘atmx by Armaguard’, and we are confident our legal position is strong.”
The dispute will be heard later this year by IP Australia, but could proceed to the Federal Court if one of the parties appeals the regulator’s decision.
IP Australia accepted the “atmx” trademark last December before international regulators recognised the brand earlier this month.
Prosegur currently provides ATM services to organisations in the retail, gaming and hospitality industries under the KwikCash brand, but it is also angling for distribution deals with banks through its emerging “Precinct” network.
It is rebranding 750 automatic tellers acquired from Westpac in 2019 to the Precinct moniker.
Banks are offloading parts of their ATM networks to specialists such as Armaguard and Prosegur as customers gravitate to digital methods of paying and managing their money.
While competition between the two monoliners for more pieces of the national ATM estate has become intense in the last six months, each has been careful to highlight their respective commitments to providing cash access for rural and remote parts of Australia.
In December 2018, the head of the RBA's payments department Tony Richards underlined the need for the financial services industry to maintain access to ATM services in rural parts of the country.
Given the RBA's concerns, the commercial fortunes of Prosegur and Armaguard are likely to hang on the capacity of their networks to service bank customers residing outside major cities.