The Green Sheet Online Edition
February 25, 2013 • Issue 13:02:02
ATM without the card
During the 2013 International Consumer Electronics Show held in January 2013, Diebold Inc. unveiled what is being touted as the world's first cardless ATM system.
The system's software integrates with mobile devices via the cloud, allowing customers to complete secure, cardless transactions, Diebold noted. The company will begin pilot testing the new system through financial institutions later this year.
"Mobile devices are driving user experience expectations in all facets of commerce," stated Frank A. Natoli Jr., Executive Vice President and Chief Innovation Officer at Diebold. "It was only a matter of time before the familiar multitouch interface style made its way to the ATM.
"With the burgeoning buying power of the millennial generation, Diebold envisions this technology will further influence user experiences at the ATM."
According to Diebold, its ATM user interface enables touch gestures, such as flick and drag, which are commonly used with today's smart phone and tablet devices. It also employs similar navigation and controls, maintaining the look and feel of existing mobile devices.
The paperless ATM allows users to receive transaction receipts via text message or e-mail, based on personal preference.
With the user's smart phone acting as the authentication device, cardless transactions can reduce security risks associated with lost or stolen cards, or even skimming, Diebold stated, adding that the system issues a one-time authentication code that expires when the transaction has been completed.
Entering transaction details on a smart phone screen instead of an ATM screen also enhances security, the company noted. To operate the system, a preregistered bank customer integrates a mobile device with an ATM by scanning a quick response (QR) code on the ATM's screen, which syncs the device via a cloud-based server and authenticates the user.
To complete the transaction, the customer then uses the smart phone to scan the ATM's QR code, and a transaction screen appears on the phone and prompts the customer to enter a one-time authentication code to complete the transaction and receive cash.
Person-to-person payments are another option, in which case the recipient receives the one-time authentication code for later use at an ATM.
Because the system is cloud-based, it doesn't require onboard computers and thus reduces power requirements. Also, eliminating card readers and receipt printers means terminals require less hardware. And with less hardware to maintain and no dispensable paper to replenish, financial institutions should realize greater uptime from their ATMs, according to Diebold.
Features of Diebold cardless ATM include:
- Completes cloud-based, cardless ATM transactions
- Enables mobile touch gestures, including flick and drag
- Looks and acts like a mobile device, with similar navigation tools
- Delivers transaction receipts via text or email message
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