![]() But experts predict small and big banks alike will explore similar moves as mobile technology continues disrupting traditional banking behavior. Wells Fargo says it is the first large bank to offer a cardless feature, rolling it out last week to its 13,000 ATMs across the nation. ![]() With just a tap of their phone - voila - $200 paid out in a 50, a 10, and seven 20s.Watch Video: Wells Fargo: All ATMs will take phone codes, not just cardsįor decades, using an ATM has required two basics: a four-digit PIN and a credit or debit card.īut a new generation of ATMs, which Wells Fargo has upgraded around Des Moines, is taking the card out of the equation, allowing customers to use their smartphone instead. Users will prepare a withdrawal request on their phones before they ever set foot in front of a bank. ATM withdraws will also be able to be scheduled in advance. Imagine withdrawing $200, but in the exact denomination of bills you prefer. ![]() In terms of customer convenience, this option seems hard to beat.Īnd the convenience afforded by smartphone ATM transactions doesn't end once an account is accessed. This technology is already on display at retailers the world over in the form of the various NFC-based payments touted by Apple, Google and Samsung. Banks that add NFC readers to their ATMs open up the possibility of simply tapping a phone against the ATM and entering a pin to access accounts. The second type of smartphone ATM requires actual hardware upgrades by banks, but is far more likely to inherit the future. But increased security aside, is novelty enough to convert users to this new multi-step process that takes even more time than swiping a debit card? ![]() A software update to ATMs and banking apps alike is all it takes to set this particular wheel in motion. For banks, this option is the easiest to implement. Once the alotted time has passed, the code expires, becoming useless even if somehow stolen. That seven or eight digit code then grants access to a customer's accounts, so long as it is typed into the ATM keypad within a brief window of opportunity. The first of the two options requires customers to request a temporary digital code from their banking app. But banks are banking on two dueling technologies, hoping that they've picked the one that will eventually become the industry's new standard. And even if a phone were to be stolen, the fingerprint identification required to unlock many phones provides a deep digital first wave of defense against bank fraud. Smartphone ATMs will obviously avoid magnetic strips altogether. Someone can duplicate a magnetic stripe, which does happen all too often." "The magnetic stripe has an issue of security. Techwire reports that Ed O'Brien, director at bank consulting firm Mercator Advisory Group warns: Smartphone-based ATM transactions are considered to be much more secure than the card-based system that spawned a global network of ATMs. Bank of America in particular already has about 8,000 of its cash-dispensers offering the feature. The traveler's biggest nightmare - losing your wallet while far from home - will lose some of its edge in the coming months as the nation's three largest banks upgrade their ATMs to allow customers to withdraw cash using their smartphones instead of their debit cards.īank of America, Wells Fargo and JPMorgan Chase ATMs across the country are already being retrofitted, with the majority of their combined 41,000 ATMs projected to be ready for us all to wave our phones around in front of by the end of the year.
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