Instead of having to carry your debit card on you at all times, imagine receiving the cash you need at an ATM without ever taking out your wallet. Thanks to a mobile app that’s currently in development, you can indicate how much money you would like to take out of the ATM right from your phone. You can do this anywhere from 24 hours before you would like to make your withdrawal, to mere seconds before making the transaction.
Revolutionizing the Way We Use ATMs
So far, there are three major banks that have been piloting this service over the past few months. BMO Harris in Chicago, Wintrust in Illinois, and City National in New York and New Jersey are all planning on launching the cardless ATM program by the end of 2014. Now, how does it work?
When you get to the ATM to make a withdrawal, the application needs to be open in your phone. A code will appear on the ATM screen that you scan with your phone in order to prove that you’re actually at the machine, and that it’s you.
Safety and Security in Mind
It is believed that cardless ATM transactions that use this technology are not only faster than traditional methods, but it’s also more secure than using a debit card. Using a phone helps prevent the skimming fraud method, where identity thieves set up cameras on ATMs to get your card number and PIN. If someone does steal your phone however, they would need your login passcode, bank account, and PIN, which makes it far more difficult to steal your identity.
As convenient as this new technology sounds, there are some drawbacks. If there is no cell phone service in the area of the ATM, a person might not be able to take out any of their money without their debit card. If this is a regular occurrence, it might steer customers away from using this service. Thankfully, the financial services company, FIS, is working on an offline mode that would allow you to withdraw money, regardless of your connection strength.
Other implementations of this technology are taking place at restaurants and gas stations too. Instead of using your card for transactions, you can simply use your phone to scan a code and pay your bill without your wallet leaving your pocket.