In the world of mobile payment ecosystem, there is a new emerging technology: Contactless Cash. Apart from making payment using smartphone’s, users can now use their smartphone even to withdraw cash from their ATM’s.
Working of this technology is similar to Point-of-Sale mobile payment that uses NFC (Near field Communication) technology.
Major advantage is that using your smartphone for ATM withdrawal removes the risk of magnetic card skimming and distraction fraud.
Spain’s Caixa Bank has provided app-enabled ATMs since 2011 and now with improved technology there are is a rapid growth in Contactless Cash industry. Last year, BMO Harris Bank rolled out cardless ATMs in the U.S. using QR codes for authentication. Most recently, Bank of America rolled out NFC-enabled ATMs in the U.S. this year, Barclays bank is rolling out a new NFC enabled ATM system in branches across the U.K. that lets Android users take out money with just a tap of the device. Chase and Wells Fargo are expected to launch this feature soon.
With all banking giants making shift towards Contactless Cash, could result in a vital new category of mobile payment industry in near future.
(Reference: http://money.cnn.com/2016/11/21/technology/barclays-atm-contactless-cash/
http://www.digitaltrends.com/mobile/wells-fargo-wallet-nfc-atm/ )
I find this new technology interesting; however I believe that there may be additional security for these withdrawals. From personal experience, I feel like a lot of people have access to my password on my phone and if they had the ability to withdraw cash remotely, it would be hard to prove. Meanwhile my debit and credit card pin is something I have always associated with keeping to myself. Do you believe this technology will continue to grow globally?