ATM manufacturer Diebold has released a new ATM that, the company said, willhelp deploying institutions attract members of the Millennial generation.

The new ATM features the ability to integrate with mobile phonesand to allow users to send cash from the ATM to third parties, thecompany said.

“Mobile devices are driving user experience expectations in allfacets of commerce. It was only a matter of time before thefamiliar multi-touch interface style made its way to the ATM,” saidFrank A. Natoli Jr., executive vice president and chief innovationofficer for Diebold in Canton, Ohio.

“With the burgeoning buying power of the Millennial generation,Diebold envisions this technology will further influence userexperiences at the ATM, Natoli said.

To complete a cardless withdrawal, a preregistered bank customerscans the ATM's QR code using a smartphone. When the devices syncvia the cloud, a transaction screen appears on the smartphone wherethe 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 thetransaction and receive cash.

Diebold pointed out that these transactions do not require cardsor carry the risk of compromised that comes with card use.

“Privacy is enhanced when users input transaction details on thesmartphone screen rather than the ATM screen. In addition, theone-time authentication code expires immediately after completing atransaction,” the company said.

The third-party transactions involve the ATM user putting in thepayment amount and recipient's contact information, which can beselected directly from his or her contact list. The recipient thenreceives a one-time code he or she can use at an ATM or branch toreceive money, Diebold said.

The company said because the new ATMs use the cloud for theiroperations, they don't need their own computers, which cuts theirpower requirements. And because they work with mobilephones, they don't need card readers and because they emailreceipts to their customers, they don't need printers. Thistranslates into fewer supplies less hardware and less chance ofcomponent breakdown.