NFC Times Exclusive Insight – Cardless ATM transactions are little more than a novelty now, but momentum is building, with three major U.S. banks, JPMorgan Chase, Bank of America and Wells Fargo having announced or disclosed plans to enable customers to withdraw cash using their mobile phones. That may include support for such NFC mobile wallets as Apple Pay for at least some of the ATMs.
The three banks are not the first to enable customers to withdraw money without inserting a debit or ATM card. There have been smaller rollouts in North America as well as some European countries. But there appears to be more sustained demand now by banks, and with the increased rollouts of NFC mobile payment globally, NFC technology is also expected to be used to enable contactless cash withdrawals, along with QR code technology and one-time passcodes.
Contactless reader vendor On Track Innovations announced last month that it has a deal with an undisclosed global provider of magnetic card readers whose products are used in financial self-service terminals, such as ATMs. The deal could result in the retrofitting of more than 200,000 existing terminals, with a total addressable market of more than 3 million terminals worldwide. OTI hopes to get orders as soon as the second quarter.
