Contactless, cardless cash gains U.K. adoption

Barclays Bank PLC revealed it is testing a cardless cash program in the United Kingdom. The initiative uses smartphones and near field communication (NFC) technology in lieu of plastic cards and is in pilot at 160 Barclays ATMs. The number of participating ATMs is expected to grow to 500 in January 2017, Barclays representatives stated.

A new feature on Barclays' mobile app will enable customers to withdraw up to £100 cash per visit, by using a one-time PIN and tapping an NFC-enabled Android phone at an ATM. Customers without smartphones can also redeem cash at participating ATMs, by selecting "Cardless Services," entering a money voucher ID and PIN, and confirming the transaction. The ATM will dispense the voucher amount.

Barclays is also promoting its CashSend money transfer service, which allows customers to send and receive cash at any Barclays ATM nationwide 24/7. According to the bank, the service is easy and convenient and is not restricted to Barclays customers. "With over 160 Barclays ATMs nationwide, you now have flexibility and convenience of sending or receiving cash," the company stated. "CashSend can be initiated via the ATM or through Hello Money." Ashok Vaswani, Chief Executive Officer of London-based Barclays Bank, said customers have become accustomed to using smartphone apps for mobile commerce and banking. "We want taking out cash to be just as easy," he said. "With Contactless Cash, customers can quickly and securely take out money with just a tap of their smartphone – a first for the UK."

U.S. cardless initiatives

Vaswani noted that the United States has also been testing cardless cash. The Green Sheet reported on this phenomenon in an article published Aug. 8, 2016, and titled "Cardless ATMs address EMV, security concerns." The article referenced several developing U.S. initiatives, including the following:

• Early 2015: The FIS mobile banking app added a Cardless Cash feature. Customers who used the app to pre-stage a cash withdrawal receive a tokenized, single-use quick response code to use at a nearby ATM.

• September 2015: PAI and Fiserv Inc. co-produced CardFree Cash, a revised version of Fiserv's Popmoney mobile cash platform. CardFree Cash users receive an encrypted token and ATM locator, which shows nearby locations where they can retrieve funds. The partners also plan to introduce Beacon technology, designed to notify users in proximity of CardFree Cash ATMs.

• October 2015: HalCash North America joined forces with PAI to launch Pin4, a cardless cash network that does not require an ATM card or bank account. Business owners can use the Pin4 API to create real-time, mobile, cardless cash solutions.

• July 2016: PAI and FIS NYCE Payments Network launched FIS Cardless Cash, a mobile phone-to-ATM scheme that replaces plastic cards at ATMs.

ATM fraud deterrent

In addition to convenience, cardless cash solutions can be a viable deterrent against ATM fraud, particularly criminal activities that involve card skimmers and cameras, some analysts have stated. In an earlier interview with The Green Sheet, Douglas Brown, Senior Vice President and General Manager of FIS Mobile, noted increasingly sophisticated ATM fraudsters. "They're starting to use techniques called inserts, which goes beyond that superficial skimmer that sits outside the machine," he said. "The insert is a physical device that is inserted inside the tracks of the machine. These inserts prey on both EMV and non-EMV cards."

Brown said Cardless Cash phone-based authentication is a crime deterrent because no data is stored or displayed on a smartphone. "We don't send your card information from the phone to the machine," he said. "The phone speaks to the ATM over a secure cloud path network."

Another related benefit of cardless cash solutions is speed, which can add convenience and safety to the transaction, Brown noted. "Because you can get in and out of an ATM in 11 seconds, there is a lot less physical threat to you," he said.

ATM deployers and payments industry analysts expect the added security and convenience of cardless cash solutions to continue to fuel global adoption.

A growing cardless movement

Todd Lawrence is CEO of Just Cash, a new company with a mobile cash solution designed to bring "the last critical mile of the banking experience into the mobile world." Built on existing ATM infrastructure, Just Cash can be integrated into digital wallets and mobile banking apps, enabling users to tap their phones to withdraw cash at participating ATMs. The company has been working closely with leading ATM manufacturers and plans a U.S. launch in 2017.

"Mobile cash has reached an inflection point, by providing accessibility, convenience and technology that has helped it scale," Lawrence said. "Just Cash requires minimal integration and limited behavioral changes, which places the company in an exciting position to capitalize on the mobile cash transition."

Lawrence further stated the mobile cash market could exceed 10 billion transactions a year. "Mobile cash represents a more simple, secure, and convenient way to access cash and never exposes customers to lost, stolen or compromised cards," he said.

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