Diebold Rolls Out ATM That Syncs With Smartphones For Cardless Withdrawals
The new ATM features the ability to integrate with mobile phones and to allow users to send cash from the ATM to third parties, the company said.
"Mobile devices are driving user experience expectations in all facets of commerce. It was only a matter of time before the familiar multi-touch interface style made its way to the ATM," said Frank A. Natoli Jr., executive vice president and chief innovation officer for Diebold in Canton, Ohio.
"With the burgeoning buying power of the Millennial generation, Diebold envisions this technology will further influence user experiences at the ATM, Natoli said.
To complete a cardless withdrawal, a preregistered bank customer scans the ATM's QR code using a smartphone. When the devices sync via the cloud, a transaction screen appears on the smartphone where the customer selects the withdrawal amount.
The cloud server then sends a one-time code to the smartphone, which the customer enters on the ATM screen to authenticate the transaction and receive cash, the company explained.
Diebold pointed out that these transactions do not require cards or carry the risk of compromised that comes with card use.
“Privacy is enhanced when users input transaction details on the smartphone screen rather than the ATM screen. In addition, the one-time authentication code expires immediately after completing a transaction,” the company said.
The third-party transactions involve the ATM user putting in the payment amount and recipient's contact information, which can be selected directly from his or her contact list. The recipient then receives a one-time code he or she can use at an ATM or branch to receive money, Diebold said.
The company said because the new ATMs use the cloud for their operations, they don't need their own computers, which cuts their power requirements.
Further, because they work with mobile phones they don't need card readers and because they email receipts to their customers, they don't need printers. This translates into fewer supplies, less hardware and less chance of component breakdown, the ATM maker said.