Credit Union Testing Cardless Mobile ATM
Members of the $16 million Diebold Federal Credit Union will make financial technology history by being among the first people in the world to test an ATM with a mobile phone interface.
Diebold, the international ATM manufacturer, is beta-testing one of its new mobile phone enabled ATMs next door to the credit union's branch in Diebold’s North Canton, Ohio, headquarters building. Members have been using it since late January.
Diebold FCU CEO Dan Gann said the credit union received positive feedback from members about the ATM, which requires members to download Diebold's mobile wallet and register their debit card number within the application.
Once registered, a member uses the app to initiate an ATM withdrawal and then scans a QR code that appears on the ATM screen. Successfully scanning the code signals the ATM to dispense the cash.
The mobile phone ATM lacks a keypad and does not need to take a PIN, which Gann said makes it more secure. It is also invulnerable to skimming, which is the theft of card numbers using an additional card reader surreptitiously attached to the ATM.
Currently only Diebold FCU members who are Diebold employees with access to the headquarters building are able to use the new ATM, Gann said. The credit union has a community charter, but the bulk of its more than 3,000 members are still Diebold employees, he said.
The credit union maintains a standard ATM at another location and still issues debit cards which can be used at any ATM or POS terminal, Gann added.