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Smartphones to Replace Cards at ATMs | Phys.org

Image Credit: TaxCredits.net

A few weeks ago we posted an article about the various mobile payment apps out there. Because more and more people are using them, banks are catching up and are making it easier for you to use smartphone technology at ATMs. Not only are some making it possible to use the mobile payment apps, but they are also allowing you to order cash on your smartphone using a mobile app, scan a barcode at the ATM, and then get your money without using a card.

Phys.org has an article about all of this. They said that dozens of banks are installing new ATMs or updating existing ones to make all of this possible. Wells Fargo, Bank of America, Chase, and some regional banks and financial institutions around the world are in the process of deploying these new ATMs.

Doug Brown, who leads mobile technology for FIS Global, a major provider of software and technology for ATMs, said, “We think our model reduces a lot of vulnerabilities.” He said the FIS cardless system is being used by at least 28 banks with 2,800 ATMs and they are trying to rapidly expand that. He said over the coming 18 months they expect there to be 80,000 with the technology.

This technology should also speed up transaction time. Brown adds that authenticating takes 10 seconds instead of the usual 30 to 40 seconds.”The performance is kind shocking to some people, they almost jump back at the instantaneous response,” Brown said. “But it provides more physical security because they can make the transaction faster.”

Another added security benefit is it curbs the growing problem of “skimming“. If you aren’t using a card, then thieves can’t steal your data from those cards with the devices they insert into the ATM card slots.

Bank of America is working on a new ATM cardless solution based on NFC or near field communication technology to allow customers to authenticate without the use of a card. They plan to roll it out in select markets at select ATMs very soon with a broader customer launch mid-year.

Chase plans to roll out their version sometime this year. You will be able to request an access code through their mobile app and enter it at the ATM. Later on you will be able to use your digital mobile wallet to complete the transaction.

Wells Fargo will allow you to use your smartphone to receive an 8-digit “token” to authorize a cash withdrawal. They also will support Android Pay and are evaluating additional wallets.

BMO Harris began using smartphone technology at its ATMs last year.

ATM manufacturer Diebold is testing a “headless” machine, without a screen or keypad, which only needs you to identify your identity through your smartphone with the fingerprint reader, or possibly with an iris scanner on an ATM.

Dave Kuchenski, Diebold’s senior business development manager for new technology says, “We don’t have to walk through the same process which we have had since the ATM has existed. If we’re using a mobile phone, we no longer have the need for a card, we no longer have a need for a receipt printer, we’ve dematerialized a lot of the devices.”

To read the full article from Phys.org, click here.

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