Friday, September 18, 2015
Brookfield, Wis.-based Fiserv Inc., a financial services and technology company, launched CardFree Cash, a new version of the mobile cash solution Popmoney, following a four-month pilot. The company credits partners VyStar Credit Union, Accel debit network, and Payment Alliance International for contributions to the program's proof of concept and ongoing rollout.
The new Popmoney scheme enables consumers to withdraw cash at participating ATMs without using a debit card. Enrolled consumers can prestage withdrawals on connected devices to generate a single-use, tokenized PIN that can be used at any Popmoney ATM. They can also opt in to proximity notifications via Bluetooth technology from nearby Popmoney ATMs.
VyStar Credit Union members who participated in the CardFree Cash pilot were able to obtain funds from ATMs. They also used the service to order emergency replacement cards, a process that can be costly and time-consuming for consumers. Vincent Brennan, President of Card Services at Fiserv, noted that CardFree Cash provides "an immediate, easy and secure method of accessing funds" while helping financial institutions "improve service and security."
Melissa Thomas, Vice President of Electronic Payments and Card Services at VyStar, called member convenience a key component of the credit union's payments strategy. "With CardFree Cash, our members can securely access funds from an ATM immediately without their debit card regardless of the reason that they don't have it with them," she said. As an additional security measure, VyStar can set limits on cash withdrawals, transaction frequency and duration for live access codes.
Louisville, Ky.-based PAI is one of the largest ATM deployers in the United States, providing full-service ATM processing, equipment sales and support and private-label ATM programs. Donna L. Embry, Chief Payments Advisor at PAI presented CardFree Cash (Popmoney) at the National ATM Council Conference and Expo in Las Vegas on Sept. 16, 2015 and the following day at FinovateFall in New York City.
"We tested the model; it works and we're taking enrollments," Embry said. "Even nonpartner banks can be Popmoney receivers." PAI is the official acquiring arm for CardFree Cash and Popmoney, which is widely available to other acquirers, Embry said.
Embry said the program uses existing ATM real estate and online banking infrastructures. She expects CardFree Cash to advance omni-channel commerce in the ATM ecosystem by transforming ATMs from passive terminals to connected, interactive devices that leverage geo-location and mobile payment technologies.
Once installed, the program will be easy to maintain, according to Embry. "ATM deployers can enroll their terminals at no charge, just by installing software," she said. "As we add functionality, they make no changes."
Fiserv and its partners plan to phase in additional products and services to the CardFree Cash program, including money transfer, rewards redemption, advertising and couponing. They expect ancillary products and services to generate a variety of use cases and significantly scale the program. For example, insurance companies that write checks for redemption can use the Popmoney brand to send single-use tokens that consumers can redeem at the ATM.
Popmoney uses one-time verification codes that are sent to the mobile number or email address where the payment notification originated to prevent unauthorized token use. The user will then present the verification code received via email or text messaging to verify their identity to obtain funds. The CardFree Cash program requires additional biometric authentication for users to withdraw funds at participating ATMs.
CardFree Cash redemption is available on GenMega & Hyosung ATM machines, with near-term plans to add Triton Systems Inc., NCR Corp. and Diebold Inc. ATMs to the program, Embry said. Consumers can access the CardFree platform using iPhone 6, Samsung Galaxy S6 and Apple Watch devices that use biometrics to authenticate identity.
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