Transguard Group has extended its partnership agreement in the United Arab Emirates with Gunnebo, a provider of retail cash management solutions.

The companies initially partnered in 2014 to offer a joint market proposition in the UAE that combines automated cash handling processes with transportation, storage and counting services, according to a press release.

Transguard, a provider of business support services, supplies automated smart cash deposit machines to retailers and banks. These units receive, check, count, credit and securely store cash until it is collected by a Transguard cash-in-transit team.

The arrangement covers not only front- and back-office deposit machines, but also core banking integration units, the release said.

With more than 2,000 machines expected to be in circulation in the UAE by 2020, the joint proposal provides customers an alternative to handling cash and having to depend on cash-in-transit companies to pick up cash and credit their bank account.

Another benefit is improved cash flow, according to the release. Cash deposited in the machine is credited to the client’s bank account throughout the day, rather than being collected by a CIT provider and credited the following day.

The machines also offer an efficient and more secure working environment, eliminating the risk of theft and loss, the release said.

“Transguard owns responsibility for the cash once it has been deposited in the machine,” Transguard Group CEO Dr. Abdulla Al Hashimi said in the release. “At that stage our clients no longer have access to or ownership of the cash, and this significantly reduces risk and can potentially also reduce the cost of insurance premiums.”

Despite significant growth in online banking and much-improved connectivity, cash remains the most widely accepted form of payment in the UAE, the release said.

Transguard, Gunnebo extend smart cash partnership in UAE